The insurance alternative for crypto and more.
After CREAM Finance, a DeFi lending protocol, was hacked for $130m, Nexus Mutual members voted to approve and pay claims. Members who purchased CREAM Protocol Cover were made whole in a matter of days.
The once popular lending protocol CREAM Finance suffered a massive loss of $130m when an expert attacker used flash loans to exploit a vulnerability in the code and manipulate the price of crypto deposited as collateral.
The CREAM Finance team offered a small partial reimbursement made of CREAM tokens, the price of which dropped 65% in the weeks after the attack. Most people who deposited crypto in CREAM's markets lost everything to this hack–except the Nexus Mutual members who purchased Protocol Cover to protect against unintended uses of code and oracle price manipulation.
Claim Assessors reviewed the CREAM hack and came to the consensus that the loss event was caused by a combination of unintended use of code, economic design failure, and oracle price manipulation. Assessors even exercised discretion in one member's favor–when this member filed a claim for a 500 ETH but realized a loss of roughly 10 ETH, Claim Assessors voted to reject this claim since it did not meet the conditions as stated in the cover wording.
However, members decided this member suffered a loss and, while the claim couldn't be approved through the traditional Claim Assessment process, they voted to pay this member 10 ETH from the DAO treasury, so they could be made whole.
While many CREAM Finance users lost a majority of their crypto holdings in the hack, members who protected their deposits with Protocol Cover received their payouts within days of filing.
When you deposit crypto assets into a single protocol, your funds are exposed to a variety of risks within that protocol. Protocol Cover protects your crypto deposits against unintended use of code, severe oracle failure, severe liquidation failure, and governance attacks.
Whether you're depositing into a protocol on Ethereum mainnet, a layer 2 network, or any other EVM-compatible network, you can protect your crypto against the biggest risks in DeFi.
Instead of depositing into a protocol and wondering if your crypto is safe, protect your crypto deposits with comprehensive cover. Once you do, you, too, can enjoy timely claims processing and peace of mind when you need it most.
The insurance alternative for crypto and more.
