Examples and Case Studies
Examples of Partnerships between Unslashed and some of the leading DeFi protocols to protect them against some of their risks
Kyber Network recently launched the Dynamic Market Maker (DMM), an innovative, next-gen AMM designed to optimise fees and enable extremely high capital efficiency for liquidity providers. Kyber was one of the earliest DeFi protocols focused on providing seamless onchain liquidity through an open reserve architecture. Kyber has always maintained a high standard of smart contract security. The policy acquired by Kyber covers up to 10,000 ETH and is focused on smart-contract risk.
Kyber has made the decision to purchase bulk insurance for the DMM, covering all liquidity providers and market-makers. In doing so, Kyber demonstrates the importance of combining the transparency of self-custody and smart-contract audits with insurance as an additional layer to mitigate risk for users.
Lido is a liquid staking solution for ETH 2.0 backed by industry-leading validators. Lido allows users to stake their ETH without locking assets. Lido attempts to solve some of the problems associated with initial ETH 2.0 such as staking illiquidity, immovability and accessibility — making staked ETH liquid and allowing for participation with any amount of ETH to improve security of the Ethereum 2.0 network. Lido DAO purchased insurance for almost 400,000 stETH through Unslashed Finance in order to insulate itself from slashing events. Should a slashing event occur, the claim on their policy will cover them from any potential losses.
Perpetual Perpetual Protocol is a decentralised perpetual contract protocol for every asset, made possible by a Virtual Automated Market Maker (“vAMM” or “vAMMs”). Traders can trade with the Virtual AMMs directly without the need for counter-parties. With the Unslashed’s policy, Perpetual Protocol covers about $2.5M of user funds and also offers an incentive of around 2500 PERP tokens to be distributed to Insurers over 6 months. Should an event occur, the claim on their policy will cover their users from any potential losses.
Unslashed provides Techemy Capital with Institutional Grade Insurance Products. Techemy Capital launched its Holistic ETH-BTC Portfolio in partnership with Enzyme Finance. The portfolio quantifies bullish or bearish conditions to add or subtract from each investor’s starting position, based on an assessment of on-chain activity, token age spent, and technical analysis.