As security is our top priority, we aim to allow our users to lend and borrow at both fixed and variable interest rates by providing a safe lending and borrowing platform.

Recognizing the significance of insurance coverage within the DeFi space, we have actively been working towards enabling our users to protect their journey on Exactly Protocol by purchasing individual coverage through external providers.

In this article, we will delve into the DeFi native coverage options available for Exactly Protocol’s users and why these products are essential in the DeFi ecosystem.

The role of insurance coverage in DeFi

Insurance coverage plays a vital role in keeping users safe against various risks inherent in the decentralized nature of DeFi protocols. Crypto-native coverage providers have emerged as an essential component in the ecosystem, offering users insurance alternatives to mitigate risks and provide them peace of mind. Furthermore, native insurance products contribute significantly to the growth of DeFi by enabling more users to participate in decentralized platforms securely.

The DeFi native coverage providers that we will introduce in this article work as a DAO (Decentralized Autonomous Organization) governing on-chain protocols that facilitate processes such as purchasing individual coverage for users and assessing claims, and ensuring, at the same time, a high level of transparency.

Coverage options for our users

Since we launched the protocol, we have been working on delivering a secure dApp to our users. We have conducted several audits and launched a bug bounty program in partnership with Immunefi. In addition, as the protocol continues growing on Optimism, we have listened to our community’s request for coverage products in this Layer 2.

Consequently, we have been working on providing our users with DeFi native cover solutions to shield themselves from potential risks.

Nexus Mutual

Nexus Mutual is the leading on-chain risk marketplace in the crypto space. This protocol aims to provide a way for individuals and organizations to share risk without relying on traditional insurance providers. They offer a comprehensive insurance cover against different kinds of risks, including Protocol Cover, ETH Staking Cover, Custody Cover, Yield Token Cover, and Excess Cover. You can find all the details about their cover products here.

Using Nexus Mutual, Cover Buyers can purchase insurance products to protect against the supported crypto-native risks. At the same time, the cover capacity for every product is sourced from one or more staking pools where users can provide liquidity and earn rewards for their contribution.

Using Nexus Mutual, our users can purchase their Protocol Cover, for Ethereum Mainnet and Optimism networks, at the following link.

You can find more information about how Nexus Mutual works by reading their docs

InsurAce Protocol

IsurAce is a decentralized protocol that provides risk protection services to DeFi users. It allows them to protect their investment funds against various risks, such as hacks, smart contract bugs, stable-coin de-peg, and other crypto-native risks.

This protocol works by sharing the risk across two primary pools — the Cover Payment pool and the Underwriting Mining pool, governed by its members, where the INSUR token represents membership rights.

Our users can buy Protocol Cover for smart contract vulnerabilities in their marketplace for both Ethereum Mainnet and Optimism networks.

You can learn more about InsurAce Protocol at the following link.

Conclusion

In conclusion, DeFi native insurance coverage plays a pivotal role in the ecosystem, protecting users against various crypto-native risks. As the DeFi space continues to evolve, it is essential for users to stay informed, conduct independent research, and make well-informed decisions when it comes to choosing insurance coverage options that best align with their needs and risk tolerance.

Please note that the content of this article is intended solely for informational purposes. We strongly recommend conducting thorough research and due diligence before making any decisions regarding purchasing coverage options.

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