DeFi and the importance of insurance protocols — Interview with Neptune Mutual
How can DeFi insurance protocols help combat the current vulnerabilities in decentralized platforms? The vast potential of decentralized finance (DeFi) is frequently overshadowed by the risks associated with crypto markets and decentralized platforms. The lack of reliable insurance policies leads to users becoming susceptible to losing funds in the event of hacks or exploits, which is happening more often as the DeFi ecosystem grows. The accelerated growth of the industry causes many DeFi projects to rush the security implementation of their infrastructure and conduct insufficient smart contract audits, resulting in vulnerable decentralized platforms. According to data aggregator CoinGecko, over $2.8 billion in cryptocurrency was stolen last year in a diverse range of malicious attacks targeting vulnerabilities in DeFi platforms; when one compares this with the $0.3 billion of TVL of the entire DeFi insurance category it is easy to see the need to scale DeFi insurance . There is no s...