I have an idea about DeFi Insurance and decentralized platforms but first I will talk about a few points
Decentralized Insurance
Decentralized insurance is a product that protects a buyer from a potential financial loss caused by a range of possible events in other words it is a tool for hedging risks
traders buy insurance as a part of their broader strategy in order to secure their profits
decentralized insurance typically covers a specified period of time and is paid in the event of a loss that may be caused by price volatility, hacking attacks or
malicious exploits of projects or protocols, and other on-chain and off-chain financial risks.
DeFi Insurance
Since the beginning of crypto there were many numerous hacks, rug pulls, and bugs that have resulted in the loss of billions of dollars
primary purpose of DeFi insurance is provide crypto investors with protection the premium pay for this insurance depending on the risk that covering
The types of risks can buy DeFi insurance for include but not limited
Smart contract risk
Oracle failures
Exchange hacks
Stablecoin de-pegging
Rug pulls
Token theft
There are many products DeFi insurance such as InsurAce Protocol, Nexus Mutual, Opium Insurance, Unslashed Finance
the decentralized nature of DeFi insurance simply means that policy holders buy insurance from a distributed group of coverage providers, as opposed to a centralized company
to purchase an insurance policy, investors have to specify
Risks that investors wanted to cover
Value they want to cover
Length of the coverage
DeFi Insurance and decentralized platforms
The idea is adding DeFi Insurance service to decentralized platforms the point is not to enter the decentralized insurance market
but the idea is to provide DeFi Insurance services for decentralized platforms risks
platforms like Nexus covers many risks related to multiple platforms and protocols
but it does not cover the risks of decentralized platforms perfectly or completely
if someone can design an advanced, effective and exclusive decentralized insurance system for decentralized platform
This will achieve several results
Increasing trust in this decentralized platform
If an effective decentralized insurance system is built and gradually with the increase in the number of subscribers it becomes cheap and it is private and exclusive to decentralized platforms and covers most of the risks related to decentralized platform and it is included with the platform and It works with the rest of the products and parts in an integrated and easy way
this means attracting new users to decentralized platforms because it will be more secure than other platforms
According to my information until now there is no platform with decentralized insurance system in it cover most risks and products by accurately and effectively way
This DeFi Insurance system may be basis and other products in future will build on it
Idea for discussion