Crypto-Native Insurance Service Nexus Mutual reimbursed his customers who had lost money in the recent Arcadia Finance Hack.
According to an announcement from Monday shared with Cointelegraph, Nexus Mutual has repaid around $ 250,000 to users who lost money in the Arcadia Finance Hack. The protocol was hacked in mid -July for $ 3.5 million in USDC (USDC) and USDS on the basic blockchain, with stolen assets exchanged to packed Ether (Weth).
The attackers have survived funds directly from user accounts. Arcadia users who lost money began to submit claims on July 29 after a 14-day cooldown. In collaboration with OpenCover, a based -based coverage seller, Nexus Mutual has provided $ 250,000 to reimbursements to date.
“Zero Risk does not exist offchain, nor will it be on Chain,” said OpenCover CEO Jeremiah Smith. He added that the decentralized financial (Defi) insurance is drastically changing the status of the industry:
“The Arcadia payments are not only going to make users affected, they are proof that Defi is ready.”
Related: Defi and the importance of insurance protocols – Interview with Neptune Mutual
Onchain -Insurance Model accelerates the payments
Nexus Mutual maintains a transparent claim history and makes its verification possible. Since its foundation in 2020, the service reportedly paid $ 18,256.181 to its users.
Claims paid per year. Source: Nexus Mutual
In contrast to traditional insurers, who often take months to resolve claims, Nexus Mutual says that most valid claims are paid within seven days, thanks to the transparency and verifyability of blockchain data.
“Too many people have had a bad experience with the traditional insurance claim process, and we are here to show that there is a better way,” said Hugh Karp, CEO of Nexus Mutual.
Related: In the meantime, $ 40 million is picking up to bring BTC life insurance to inflation-sensitive economies
Smart contract risk is still emerging
While Defi risks with regard to guardians eliminates intermediaries, it introduces new vulnerabilities in the form of complex smart contracts, often with considerable attack surfaces. Due to the complexity of onchain systems, it is much easier for critical vulnerabilities to stay unnoticed until it is too late.
A recent example is the hack of the Superrare (weird) token adjustment contract, which took place at the end of July and resulted in the theft of around $ 731,000 in rare tokens. Cointelegraph analysis revealed a vulnerability in the smart contract-a failed access control control set everyone to change the balance of users into contract.
According to the Nexus Mutual Apponement, the Arcadia exploit emphasizes “the inherent risks related to decentralized financing.” Nevertheless, investors can now use the insurance to reduce such risks, the company claims to be more accessible:
“Nexus Mutual offers extensive coverage against smart contract exploits and related risks, so that progressive institutions and advanced investors are able to allocate capital within the Defi landscape with confidence.”
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