Insurance Protocols
In DeFi (Decentralized Finance)
Plain English
DeFi services that provide coverage against smart contract failures, hacks, or other risks. Users pay premiums to get protection, similar to car insurance. If something goes wrong with a covered protocol, users can file claims and get compensation.
Technical
Decentralized coverage mechanisms protecting against smart contract risks, protocol failures, and other DeFi-specific hazards. Users stake capital in coverage pools and earn premiums in exchange for assuming risk. Claims are processed through governance mechanisms or parametric triggers. Examples include Nexus Mutual and specialized protocol-specific insurance offerings.