OpenCover, a distributor of decentralized insurance coverage geared toward cryptocurrency and Web3 platforms, has gone reside on Base, the Ethereum overlay blockchain constructed by Nasdaq-listed U.S. crypto trade Coinbase (COIN). The mutual insurance coverage supplier additionally obtained a Base ecosystem funding bump from Coinbase.
OpenCover is working with decentralized finance (DeFi) cowl supplier Nexus Mutual, which permits traders to collectively govern swimming pools of capital to supply insurance-like cowl beneath the auspices of a U.Ok.-based discretionary mutual.
Insurance coverage inside the crypto trade is sparse, and experimental areas like DeFi current a set of dangers that even digital asset underwriting specialists are inclined to shrink back from. Then again, there exists an extra of capital seeking to be deployed by DeFi cowl pioneers like Nexus Mutual.
OpenCover, which raised $4 million in a seed spherical led by the likes of NFX and Bounce Crypto, obtained a $200,000 funding bump from Coinbase to bolster its debut on Base, in line with OpenCover CEO Jeremiah Smith.
The insurance coverage different, which can be rolling out on Optimism, one other Ethereum layer 2 blockchain, is working with Aave, Uniswap, Curve, Protected, Morpho, Synthetix, Beefy, Angle, 1inch and Yearn, Smith mentioned.
“OpenCover is an insurance coverage different and canopy aggregator that primarily presents safety in opposition to protocol failures, equivalent to what occurred with Curve a number of weeks again,” Smith mentioned in an interview with CoinDesk. “We’ve got $200-plus million in underwriting capital from Nexus that’s now immediately accessible for the very first time on a layer 2.”
