Although Decentralised Finance (DeFi) has been around since 2018, with projects such as MakerDao and 0x, in mid 2020 the DeFi boom truly begun. Currently there is an estimated $15 billion dollars of Total Value Locked (TLV) in the space. TVL represents the dollar value of all the bitcoin, ethereum and other tokens locked in the smart contract of a given DeFi project.
This means investors entering DeFi projects have collectively injected around $15 billion into the space. Most of which have entered with the hope of making significant returns though yield farming and other DeFi models that focus on high returns. Allan Henderson, a former Actuarial Analyst at Lloyds Insurance saw this explosive growth as an opportunity. Not to add more fuel but to provide DeFi specific insurance to help protect the $15 billion TLV already in the space.
Distributed technology needs distributed risk, Allan's project Ether.Insure is developing a digital mechanism that allows for the decomposition of the classical insurance value chain. Where insurance risks can be priced, transferred, and managed by many participants rather than a centralised entity.
"Having been an actuary, we are trained to not only evaluate risk but also discover opportunities. Our product is insurance, but our goal is to empower DeFi participants with greater consumer confidence, hence growing the entire space"
Another company; Nexus Mutual is currently the only other notable incumbent to service the DeFi insurance space. Their data shows that less than 1% of the TLV in DeFi is actually insured. The Ether.Insure team will be looking to increase this and swallow a significant chunk of this underserviced part DeFi.
"There is a lot to do, but we must be practical and focus on getting from zero to one, to get product market fit. Hence why initially we will only be launching with two simplified products; Smart contract failure cover and custom pools" added Allan.
To find out more about Ether.Insure please visit: https://ether.insure/
Media contact
Company Name: Ether Insure
Contact: Theresa Hamilton, Head of Growth
E-mail: growth@ether.insure
Website: https://ether.insure/