InsurAce recently announced that it will offer insurance for a number of different blockchains, thus becoming the first company of its kind to do so.
For a long time, the crypto industry has been working on attracting insurance companies in order for its users to feel safe and confident, especially when investing in new projects. Tying crypto and insurance together opened a lot of new possibilities, such as paying for life insurance with crypto, or insuring investments, and thus reducing the many risks that the crypto industry carries with it.
With that said, insurance is just another form of financial services, and with the DeFi sector’s goal being to fully decentralize all forms of financial services, it was not long before decentralized insurance companies started to emerge. One of the biggest ones, and the current leader in DeFi insurance pretty much by default at this point, is InsurAce ($INSUR).
What Is InsurAce and What does It Do?
InsurAce is a decentralized insurance protocol that offers reliable and sure DeFi insurance to DeFi users and projects. Its goal is to remove accessibility issues, underlying risk, and capital inefficiency, which are all the problems that plagued the DeFi insurance sector up to this point.
The project emerged to offer unbeatable portfolio premiums, sustainable investment returns, unique insurance products, and as of May 21st of this year, multi-chain insurance, as well.
The project recently announced that it will now offer insurance for a number of different blockchains, thus becoming the first company of its kind to do so. Until now, it worked only on Ethereum through its own dApp, but since launching v1.0 of its new product, the project will now also cover Binance Smart Chain, Huobi ECO Chain (HECO), Polygon Network, Fantom, and Solana.
These are all the leading blockchains when it comes to DeFi development, and, typically, networks that most users and developers have chosen to access or offer DeFi products on.
As mentioned, doing this made InsurAce the first DeFi insurance project to go multi-chain, and as such, it has elevated itself to an entirely different level from its competitors. At the moment, the company offers an unparalleled range of different insurance-related services, including the ability to insure IDOs.
IDO Insurance Comes to DeFi
As many likely know, IDOs (Initial DEX Offerings) became rather big over the past several months. They are the equivalent of IEO, or Initial Exchange Offering, which is a token sale model that centralized exchanges have started offering through their launchpad, following the end of ICOs.
With decentralized exchanges (DEXes) seeing a lot more development and solving many of the issues that have been holding them back (such as the lack of liquidity) since the DeFi sector had emerged, they finally reached the point where they could offer the same quality of service as CEXes. As a result, they started creating their own launchpads, which were specifically designed for DeFi projects.
But, as it is always the case in the crypto industry, there are risks with IDOs, such as investing in weak projects or seeing the value of the coin’s price crash. Sometimes, a project can still turn out to be a scam, even though these instances have grown to be much rarer since projects behind launchpads have strict criteria that projects need to fulfill before being launched. As a result, IDO insurance has been something that the DeFi sector definitely wants to have.
InsurAce recognized this lack and the need for IDO insurance, and so last Wednesday, it launched a new product to offer just that. With it being the first insurance project to go multi-chain and offer IDO coverage, it is currently the DeFi insurance leader, pretty much by default.
Founder and editor at BTC PEERS. Andrey writes about financial experiments, DeFi, cryptocurrency, and blockchain.