• LI.FI has partnered with InsurAce to provide protection for users who are bridging their cryptoassets between blockchains.
• This “Bridge Insurance” covers hacks, malfunctions and exploits that would otherwise drain user funds.
• The Bridge Insurance is currently backed by a $200,000 fund, and covers around 130 transactions worth around $15,000 across eight different chains.
LI.FI Partners With InsurAce To Offer Crypto Bridge Protection
LI.FI has announced a new partnership with risk cover protocol InsurAce to provide protection for users who are bridging their cryptoassets from one blockchain to another. This new “Bridge Insurance” will help protect users against the risks of moving their assets between different blockchains, allowing them to feel safe while participating in decentralized exchanges and other activities involving cross-chain transactions.
What Does The Protection Cover?
The Bridge Insurance offered by LI.FI and InsurAce covers hacks, malfunctions and exploits that would otherwise drain user funds. It also offers coverage for losses caused by “error in slippage” on decentralized exchanges involved in the transfer according to protocol documentation.
Current Status of The Fund
At press time, the tool said it covered around 130 transactions worth approximately $15,000 across eight different chains. The starting amount for the bridge cover fund currently stands at $200,000 but this amount may increase as more people use the service over time.
What Does This Mean For Crypto Users?
This new insurance offering shows that companies are beginning to take seriously the risks associated with moving crypto assets between blockchains and are taking steps to provide added security measures for users participating in such activities as decentralized exchanges or similar activities involving cross-chain transactions. By providing this type of coverage, LI.FI and InsurAce can help ensure that users do not suffer major losses due to unexpected events like an exploit draining a protocol or some other unexpected event during a transaction process which could lead to significant financial loss if not protected against properly beforehand..
Conclusion
Insurance coverage is an important financial protection that helps individuals remain safe when unexpected losses occur during cryptocurrency transactions between blockchains or any other form of digital asset movement between platforms or services online . By partnering with InsurAce , LI . FI is helping make sure that its customers have access to reliable insurance products designed specifically for protecting them from these types of events .