DeversiFi recently announced that it has signed an insurance policy for its platform and user funds for 1001 Ethereum (ETH), thanks to Nexus Mutual.
DeversiFi is a self-custodial exchange built for serious traders. And as such, we take your trading…seriously.
Along with audited smart-contracts, we've now gone one step further, covering user funds up to 1001ETH w/@NexusMutual insurance.
— DeversiFi (@deversifi) July 9, 2020
In a market as innovative as the decentralized exchange sector, an important aspect concerns security: if, for centralized platforms, the problem falls on the exchange itself, which could have flaws or unknown problems, in a DEX the problem falls on the smart contracts, which could be targeted and be used to drain the funds of all users, as has happened in several cases.
DeversiFi, being a decentralized platform, also relies on a smart contract that has been audited, but this is not sufficient and does not guarantee anything in case of loss of funds.
In fact, these audits serve to ensure that there are no serious and known problems, but it does not mean that new attack techniques cannot be employed to steal funds from the smart contract.
And so the DeversiFi team decided to provide an additional level of security and protection to its users’ funds and relied on Nexus Mutual to insure the smart contract against loss up to a maximum of 1001 ETH, currently about $240,000.
Those who are not accustomed to the world of decentralized finance (DeFi) will hardly know one of the companies that deal with crypto-insurance such as Nexus Mutual, a decentralized insurance solution built on Ethereum, which allows all users to cover losses but also to participate in governance.
The company’s core activity is to protect with insurance the smart contracts of various platforms, in this case, promoted by the DeversiFi team.
Anyone can insure their capital in one of the various smart contracts where they hold their funds, hence it is personal insurance that is determined by various factors and is paid by the user, as in the traditional system.
Having insurance is fundamental, especially in this period and in the light of all the events that have happened in recent times, especially in the DeFi world, as they have only caused panic, making users less trustful of this sector.
DeversiFi has about $3 million locked, an important amount and providing insurance makes it a safer platform.