The insurance alternative for crypto and more.
Several audits and a $2m bug bounty were not enough to stop an attacker from hacking Rari Protocol, a Compound-fork, for a loss of $80m. People who protected their crypto with Protocol Cover received payouts just days after filing.
Like most hacks, it happened early in the morning and was over almost as quickly as it began. On 30 April 2022, an attacker stole more than $80m from the Rari Capital Fuse market–a permissionless lending protocol that was governed by TribeDAO members–after taking advantage of a vulnerability in the codebase.
In the aftermath, the people who lost crypto assets faced uncertainty and doubt that they’d ever see their funds again. In May, the Tribe team created a proposal to discuss reimbursing the people, institutional funds, and DAOs affected by the hack. While an initial vote passed in May to fully reimburse all those who lost funds, the reimbursement was voted down in another governance vote in June.
This wasn’t a concern for those who held Rari Capital Protocol Cover. Nexus Mutual members who lost money in the hack filed claims and provided proof of loss. Claim assessors reviewed each claim, verified the total loss, and voted to approve $5.08m in claims.
Those without protection weren’t as lucky. Babylon Finance, a protocol that suffered substantial losses due to the hack, ceased operations while waiting for action from TribeDAO. After many months and a series of governance proposals and votes, TribeDAO members voted to reimburse those affected by the Fuse hack.
In September 2022, TribeDAO reimbursed $39.29m to the people and organizations that lost crypto assets in the hack. During that six-month period, crypto prices declined significantly, with Ether (ETH) dropping by nearly 53%.
Nexus Mutual members received a payout in a matter of days after filing their claims. No delay, no bureaucracy. Just comprehensive cover, timely claims processing, and peace of mind when you need it most.
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.
