LI.FI, a cross-chain crypto bridge aggregator, has launched an insurance tool aimed at protecting users against the risks of transferring their assets between different blockchains. Working with InsurAce, the tool offers coverage for hacks, malfunctions and exploits that could potentially drain users’ funds. The product also protects against losses caused by “error in slippage” on decentralized exchanges involved in the transfer. By insuring against bridge failures, users can avoid losing funds in some of crypto’s biggest hacks, such as the Ronin exploit that has resulted in losses of hundreds of millions of dollars.
At present, LI.FI and InsurAce’s offering covers around 130 transactions, worth approximately $15,000, across eight different chains. The bridge cover fund currently stands at $200,000, with InsurAce stating that they will increase capacity regularly to fit demand. The insurance coverage provides financial protection to individuals when an unexpected loss occurs, such as an exploit that drains a protocol.
The launch of LI.FI’s insurance tool comes at a time when decentralized finance (DeFi) platforms and protocols are becoming increasingly popular. However, the growing popularity of DeFi has also led to an increase in hacks and exploits, resulting in significant financial losses for users. LI.FI’s solution aims to mitigate these risks and provide users with greater confidence when transferring assets between different blockchains.
According to a recent report by CipherTrace, DeFi-related hacks and frauds resulted in losses of over $474 million in the first seven months of 2021. This highlights the need for greater security measures and insurance coverage in the DeFi space. LI.FI’s insurance tool is a step towards addressing these concerns and providing users with a safer and more secure way to transfer their assets.
LI.FI’s cross-chain bridge aggregator allows users to move their assets between different blockchains seamlessly. The platform supports a wide range of blockchains, including Ethereum, Binance Smart Chain, Polygon, and more. By using LI.FI’s platform, users can avoid the high fees and slow transaction times associated with traditional blockchain transfers.
In addition to its insurance tool, LI.FI also offers a range of other features, including a liquidity aggregator, yield optimizer, and more. The platform aims to provide users with a comprehensive suite of tools to help them maximize their returns and minimize their risks when using DeFi protocols.
Overall, LI.FI’s insurance tool is a welcome addition to the DeFi space, providing users with greater security and peace of mind when transferring assets between different blockchains. As the platform continues to grow and expand its coverage, it has the potential to become a valuable asset for DeFi users looking to mitigate the risks associated with transferring assets.
