Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Krypto-Rodák insurance service Nexus Mutual Replized customers who have lost money in the recent financial hack Arcadia.
According to Monday’s announcement shared with Cointlegraph, Nexus Mutual returned about $ 250,000 to users who lost funds for financial hack Arcadia. The protocol was Hacked in mid -July for $ 3.5 million In USDC (USDC) and USDS on a basic blockchain, with stolen asset exchanged for wrapped Ether (WETH).
The attackers sipped funds directly from the user accounts. Arcadia users who have lost funds began to make demands on July 29 after 14 -day cooldown. Nexus Mutual, in cooperation with OpenCover, a seller based on basic coverage, has so far provided payment of $ 250,000.
“The risk of zero does not exist offchain or there will be no onchain,” said OpenCover CEO Jeremiah Smith. He added Decentralized Finance (Defi) Insurance drastically changes industry status:
“Arcadia payouts are not just about concerning the users of the impact of whole persons, but are proof that defi is ready.”
Related: Defi and importance of insurance protocols – interview with Neptune Mutual
The onchain insurance model speeds up paydays
Nexus Mutual maintains a transparent history of demands and allows verification Onchain. Since its foundation in 2020, this service reportedly paid its users worth $ 18,256,181.
Unlike traditional insurance companies who often last months before the claim is resolved, the Nexus Mutual says that most of the applicable claims are paid within seven days, thanks to the transparency and verifiability of blockchain data.
“Too many people have had a bad experience with the process of traditional insurance claim, and we are here to show that there is a better way,” said Hugh Karp, CEO of Nexus Mutual.
The intelligent risk of contracts still appears
While Defi eliminates the risks of intermediary workers, it introduces new vulnerabilities in the form of complex intelligent contracts, often with significant offensive surfaces. Due to the complexity of onchain systems, it is easier for critical vulnerabilities unnoticed until it is too late.
One of the recent examples is Hack Superrare (rare) token contract that occurred at the end of July and resulted in theft about $ 731,000 the value of rare chips. The Cointlegraph analysis revealed that the vulnerability in the Intelligent Agreement-Control of Access Control-Access to anyone edit user balance balances.
According to the mutual announcement of Nexus, Arcadia Exploit emphasizes “inherent risks associated with decentralized financing”. However, investors can now use insurance to mitigate those risks that the company claims to be more accessible:
“Nexus Mutual provides extensive coverage against intelligent exploitation and related risks, allowing institutions and sophisticated investors to ahead to confidently assign capital within the landscape.”
Magazine: North Korea Crypto hackers Tap Chatgpt, Malaysie Road Money Siphoned: Asia Express
