Security Intensifies Among Incumbent Insurance Solutions
“The Intelligent Insurer #4” — Incumbent Insurance Solutions Seek to Address Security Flaws
Incumbent insurance solutions are intensifying their focus on security and rightly so! Ethereum-based Nexus Mutual is seeking to transition their signing structure to multi-sig. The move to implement multi-sig comes shortly after the Nexus Mutual CEO Hugh Karp was hacked for $8 million.
By implementing multi-sig, successfully moving funds from Nexus Mutual’s community fund will require the signature of several key professionals. Leaders from well-known enterprises like Delphi Digital, CoinGecko, and 1confirmation have all nominated themselves to be part of the multi-signature process.
However, the fact there is a need to move to multi-sig highlights that there is a flaw in the security architecture of Nexus Mutual. This flaw is pervasive among the incumbent insurance solutions. Congregating community funds in one location leaves these funds vulnerable to attack, regardless of the signing process.
Insured Finance addresses such attack vectors by partitioning funds among separate contracts. The design of the Insured Finance marketplace allows the collateral for each insurance agreement to be stored in a separate contract. This reduces the incentives for an attacker to target contracts as the value at stake will be a minuscule fraction of the total value spread across the marketplace.
This structure brings the probability of a significant attack to near-zero. Even with a multi-signature structure, other insurance solutions will face risks of collusion or targeted attacks succeeding against multiple signers. The history of blockchain is rife with stories of attackers overcoming barriers to successfully access congregated pools of liquidity.
Superior security is not the only benefit of holding Insured Finance tokens. It’s been an action-packed week for INFI token holders. The first marketplace launched for the token as INFI was paired with Ethereum on Uniswap. Those interested in the Insured Finance project can now find a liquid marketplace to buy and trade the INFI token. Data from CoinGecko shows that over $20 million in trading volume was carried out within the first 24 hours of listing.
Moreover, initiatives have been announced for those INFI token holders who have significant allocations and have committed to holding their token long-term. Known as Insured Insiders, this collection of token holders keep over 10k INFI tokens and have either kept their allocation from the private sale or have decided to build up this allocation through later sales. The commitment of these token holders is integral to the success of Insured Finance and a series of initiatives has been announced to reward these holders.
Insured Insiders will get privileged access to Insured Approved projects. The first fully insured project is to be launched in February. Some of the promising blockchain projects are incubated on the DuckDAO platform and by VYSYN Ventures. DuckDAO is a platform that helps the most disruptive blockchain projects raise funds. DuckDAO recently hosted the Insured Finance public sale. As part of the initiative to reward Insured Insiders, these token holders will have the opportunity to get a slice of some of the most high-potential projects that are incubating with DuckDAO.
Insured Insiders currently have the opportunity to whitelist for a lottery that will distribute whitelist spots for keyTango. KeyTango is a project that helps newcomers navigate the DeFi ecosystem. KeyTango is currently incubating on the DuckDAO platform and Insured Insiders have the chance to win whitelist spots in the project. Read this tweet for details of how to participate in the lottery.
About Insured Finance
Insured Finance is a decentralized, peer-to-peer insurance marketplace. Built on the Polkadot blockchain, Insured Finance users can request customized insurance on a wide variety of digital assets. Those that fulfill requests earn premiums and can earn a competitive return on their capital. Claims are fully collateralized and settled instantly.