Crypto-Persian Insurance Service Nexus Mutual reimbursed its customers, who recently lost money in Arcadia Finance Hack.
For Monday’s announcement shared with cointelegraph, Nexus Mutual made about $ 250,000 reimbursed to users who lost funds in Arcadia Finance Hack. The protocol was hacked in USDC (USDC) in mid -July $ 3.5 million and USDs on base blocks, which was swapped to the stolen assets wrapped Etor (WET).
The attackers gave direct funds from user accounts. Arcadia users who list funds starting on July 29 after the 14-day Coldown. In partnership with an base-based coverage vendor, Openkavar, Nexus Mutual has provided $ 250,000 in reimbursement to date.
Openkavar CEO Jeremia Smith said, “Zero Risk Offchen is not present, not OCE.” He said that decentralized finance (DEFI) attracts the status of the insurance industry:
“Arcadia payouts are not only about making the impact of users who are proof that Defa is ready.”
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Onchain insurance model accelerates payment
Nexus Mutual maintains the history of a transparent claims and enables its verification. Since it is installation in 2020, the service has allegedly paid claims of $ 18,256,181 to its users.
Unlike traditional insurers, which of the months takes the time to solve the clam, Nexual says that most valid claims are paid within seven days, thanks to the transparency and verification of blockchain data.
“Many people have experienced a bad experience with the process of traditional insurance claims, and we have a better way to show that here,” said Hugh Carp, CEO of Nexus Mutual.
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Smart contract risk still tax
While DEFI eliminates risks related to custodial middlemen, it increases new vulnerability in the form of complex smart contracts, often with important attack attack surfaces. Due to the complexity of the onchain system, it is very easy for significant weaknesses that no one should pay attention until it is late.
A recent example is a hack of the superreyer (rare) token staging contract, which occurs in late July and resulted in approximately $ 731,000 rare tokens. Cointelegraph Alysis revealed a vulnerability in smart contracts, which watched anyone’s bottled access control check-cloth to modify the in-contract balance of users.
For Nexual Declaration, Arcadia exploitation “exposes the underlying risks associated with decentralized finance.” Nevertheless, investors can now take advantage of insurance to reduce sucking risks, which the company claims that space has been made more accessible:
“Nexus Mutual Smart Contract provides extensive coverage against exploits and related risks, which is able to hold a conference to allocate capital within the DEFI landscape to further -thinking institutions and sophisticated investors.”
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