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DeFi Insurance: Bridge Cover Provides Comprehensive Coverage and Peace of Mind for Cross-chain Transactions
Earlier in April, InsurAce and LI.FI partnered to introduce a revolutionary insurance product to the decentralized finance (DeFi) ecosystem - Bridge Cover. This innovative product addresses a significant issue in the DeFi space, where users often face the risk of losing their funds during cross-chain transactions.
Bridge Cover serves as a safety net that compensates users for their claimable losses during a specified bridge transaction. It offers comprehensive coverage, claims procedures, and proof of loss and ownership requirements to ensure a secure, transparent, and seamless experience for users.
For a more in-depth understanding of how Bridge Cover works, check out this deep-dive thread.
To use Bridge Cover, users can opt-in for the feature on Jumper.Exchange, where the product is live. The insurance fee is typically a small fraction of the user's bridge amount, ranging from 0.1-0.5%, depending on the underwriter's risk profile.
Since its launch, Bridge Cover has covered over 4800 transactions and a cumulative amount of $876,683, providing much-needed protection to DeFi users. The success of Bridge Cover showcases the demand for insurance products in the DeFi ecosystem, highlighting the potential for further innovation and growth in the future.
Bridge Cover is the first-of-its-kind in the DeFi insurance landscape, aimed at fostering trust and encouraging wider adoption of cross-chain transactions. It provides users with the confidence to conduct cross-chain transactions without fear of losing their funds, thereby unlocking a new level of financial opportunities and growth in the DeFi space.