The Crypto Insurance Provider Joins Polygon Just a Few Weeks After Landmark Hack
Last updated
Just a couple of weeks ago, international media was abuzz with news of the biggest Decentralized Finance hack in history. 600 million USD was stolen from Polygon Network servers, including shares in token providers like Ethereum, Binance Coin and Polygon.
Of course, this isn’t the first hack to happen on the Polygon Network. Decentralized Finance, as a new sector that is constantly developing and evolving, has had many of its vulnerabilities exposed during this hacks. DeFi, in 2020, represented one of the largest growing sectors in crypto and also one of the largest growing sectors for hacks.
By July in 2020, DeFi accounted for three-quarters of the total hack volume in the crypto industry, and that was before the 600 million USD hack on the Polygon Network.
Obviously, the necessity for solutions and user insurance within the DeFi sector has become a pressing concern.
While the news of the 600 million USD hack was covered by outlets like Time, BBC, Forbes, CNBC and more, once again shining a spotlight on the vulnerabilities of the DeFi market for investors in crypto. However, one of the most interesting pieces to spin off of that news is the discussion around how hacks like these will drive the development of DeFi. For example, Cointelegraph wrote that while the hack is, in and of itself, a bad thing, the repercussions going forward for the DeFi market will be widespread and ultimately positive.
Let’s examine why.
As we said above, DeFi is still a young sector within crypto technology. The biggest issue facing DeFi platforms right now revolves around security. How can users feel secure in their investment into various DeFi markets. In addition to that, how can the continued growth of DeFi help to smooth out issues of safety and functionality.
An example: because of the number of persnickety hacks that took place within the decentralized finance sector in 2020, users and observers of the market began to create decentralized insurance options for users, to better help protect them against hacks, theft, smart contract issues and more. Companies like Nexus, Cover and INS3 have risen as legitimate coverage for DeFi users, helping them to protect themselves against the above vulnerabilities. At the same time, these companies are adjusting and evolving to keep up with the changing nature of hacks and theft on DeFi, realizing the weak spots in the DeFi armor and covering over them.
In essence, the issue that DeFi now faces, in light of this monumental hack on Polygon Network, will force innovators and token providers in the sector to shore up the vulnerabilities that have been exposed throughout this year and last year.
Now INS3 is preparing to launch on Polygon Network. While we’ve discussed the benefit of using INS3 as your DeFi insurer before, they’re worth reiterating here. INS3 uses Oracle and User Game Theory to provide users with a fair way of verifying their insurance claims. Not only that, but INS3’s place on the Polygon Network allows users to insure across a range of platforms, like Ethereum, Binance Smart Chain, Conflux and more. Finally, INS3 gives users a range of different coverage options, also users to cover loans, DeFi, stablecoins and more.
Currently INS3 are in discussions with a variety of partners on Polygon Network. Keep your eyes peeled for more information and updates on these developments.
Make sure you stay covered for the next market crash with INS3! Follow us on Twitter for the latest coverage news, or join our Discord to engage with our community!
