The Venom Foundation, the platform behind the Venom blockchain network, plans to unveil a DeFi insurance policy. In this regard, the Venom Foundation has started looking for a DeFi insurance partner to strengthen on-chain asset protection.
The move aims to help consumers secure their assets in Venom-powered dApps against likely custody issues, smart contract failures, and the rest of the on-chain risks. Instead of developing its exclusive insurance service, the platform is looking for a professional insurance agent who can provide reliable claims processing and coverage.
Venom Foundation Expands DeFi Insurance and On-Chain Security
Venom Fondation’s decision to have an insurance partner will strengthen the security of its assets in the chain. The development underlines growing concerns over growing losses from various crypto exploits and rising value locked in DeFi entities. Thus, the plan to build a resilient insurance infrastructure is crucial to improve DeFi services.
As part of this development, the platform officially invites well-known DeFi coverage protocols and insurance companies. That’s why it wants them to be part of a thorough protection program. Under this proposal, the chosen employee would provide insurance products covering assets held in critical Venom services. They include the Venom Pools in case of staking, the DEX Web3.World and cross-chain bridges and wallets operating within the network.
Reducing DeFi risk through regulated insurance
With this step, Venom Foundation is ready to include a valid insurance solution in its network, while relying on an external partner with sufficient operational experience and financial capacity. The platform is particularly looking for providers who can provide custody and smart contracts coverage while operating in a regulated environment. This move comes at a time when security is one of the biggest obstacles facing the DeFi sector.
According to Venom Foundation CEO Christopher Louis Tsu, “DeFi has spent years debating its returns with almost no time to assess its downsides.” The executive added that institutional investors need clearly measurable and defined risks before they can commit huge funds to the sector. For this purpose, the Venom Foundation is currently accepting applications from eligible insurers and insurers.