LI.FI and InsurAce Pitch Protection for Moving Crypto Between Blockchains

LI.FI partnered with risk cover protocol InsurAce to provide protection for users who are bridging their cryptoassets from one blockchain to another.

AccessTimeIconApr 18, 2023 at 4:29 p.m. UTC
Updated May 9, 2023 at 4:12 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cross-chain crypto bridge aggregator LI.FI on Tuesday rolled out an insurance tool that it says will protect its users against the risks of moving their assets between different blockchains.

LI.FI is working with the InsurAce on “Bridge Insurance” to offer coverage for hacks, malfunctions and exploits that would otherwise drain users’ funds. InsurAce’s product protects against losses caused by “error in slippage” on decentralized exchanges involved in the transfer, according to protocol documentation.

  • Crypto Market Leaders and Laggards in 2023
    01:50
    Crypto Market Leaders and Laggards in 2023
  • Why Injective's INJ Has Surged 3,000% in 2023
    00:52
    Why Injective's INJ Has Surged 3,000% in 2023
  • DeFi Market Rebounds to $50B as Speculators Hunt for Yield
    01:11
    DeFi Market Rebounds to $50B as Speculators Hunt for Yield
  • How Spool Is Aiming to Help Institutions Enter DeFi
    11:05
    How Spool Is Aiming to Help Institutions Enter DeFi
  • Insuring against bridge failures could offer a reprieve to users who lose their funds in some of crypto’s biggest hacks, like the Ronin exploit. That exploit and others have ranged into the hundreds of millions of dollars. Insurance coverage is the financial protection that is provided to an individual when an unexpected loss occurs, like an exploit that drains a protocol.

    LI.FI and InsurAce’s offering is nowhere near that level yet. At press time, the tool said it covered around 130 transactions, some $15,000 in value across eight different chains. The starting amount for the bridge cover fund currently stands at $200,000. “As a brand new product, we’re starting small and will increase capacity regularly to fit demand,” said InsurAce to CoinDesk over Twitter.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Sage D. Young

    Sage D. Young was a tech protocol reporter at CoinDesk. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, ARB, PEOPLE, DOGE, OS, and HTR.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.