I am sure Indigo team is building a great project on a fully audited code but there are always a possibility, however small, of someone finding a bug and exploiting the protocol.
So can there be a protocol level insurance cover, funded through treasury or revenue generated by the protocol, to compensate users in such a scenario. Specially when there are some insurance protocols available on Cardano.
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this is an interesting topic to continue thinking about
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I like the idea. Since code is very difficult to make foolproof and the recent events that continue to show vulnerabilities in smart contracts, the idea of being able to make people more comfortable in putting their funds in a project is a great idea. I have not looked into the projects offering “insurance” but my concern would be the scope of coverage and the ability of the insurer to pay claims.
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I haven’t seen any protocol taking insurance measures. Sounds interesting.
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Had some thoughts about rugpull insurance and hack insurance. There is a need for it. The thought of implementing it automatedly on protocol is the most exciting
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The team may have already considered SAFU (Secure Asset Fund for Users (SAFU) | Binance Academy) and I know this approach has been adopted by Minswap.
Longer term as the project grows, an additional internal fund to collect reserves over time seems like a good idea. It would insulate against any black swan event.
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An interesting topic is how insurance can be fairly implemented into the cryptoverse. This area probably needs more clarity in the form of impending regulations so that theres a framework to work around.
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to fairly implement insurance, each claim event should pass an objective/prior set/clear set of qualifications to be a valid claim. meaning there should be no ambiguity whether a claim is valid or not. if such a setup is made, then it will be even easier to automate claims payouts should incidents occur
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Well it willl be possible when there are decentralized insurance protocols live on Cardano and it will work through smartcontract and claims will be paid when any of the defined criteria is met.
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That is where decentralized insurance comes in. There is no ambiguity and code is the king.
And necessary considering the amount of money and complexity of the code involved.
Someday, we will see that too.
With the success of any project will come insurance, and this idea could already be in the works. The only way it would be implemented though, is if we had a ton of liquidity.
I’m sure in the meantime until we reach that level of success, if any real incidents were to happen, that there would compensation in place for the user affected.
yeah was thinking about this too, insurance would be great especially when we are in the beginning, look what could have happened to Minswap for example, it woulda been a disaster the entire media would have FUD-ed the entire cardano ecosystem, it is still a miracle we somehow dodged that huge F shaped bullet thanks to Wingriders.