Home » Decentralized Insurance Protocol Cover – to cover Pickle Hack

Decentralized Insurance Protocol Cover – to cover Pickle Hack

by Hans Lipper
Pickle Hack

Cryptocurrency Industry is highly susceptible to hacks and online attacks, which necessitates a robust and organized insurance program that allows the industry to create viability and stability.

The recent Pickle Finance flash loans attack worth 19.7 Million dollars jolted the industry, post which an insurance claim was filed with the DeFi Insurance Protocol Cover. A payout of a substantial 340 thousand USD can be initiated if the Claim Validity Committee approves the request.

99 Percent of Uses Vote β€œYes” for Pickle Insurance Claim

The Vote is live on the Cover Protocol website, where the users can Vote a Yes or No for providing the payout for the claim payments. Till now, 99.59 percent of the users have voted  in favor of the claim payout. https://twitter.com/CoverProtocol/status/1330238732558098437?s=20

The claim was filed on the Insurance protocol  website Cover,on which the stakers have voted to relieve the Cover tokens to payout the holders. The users are hopeful that the Cover would be voted ‘Pass,’ allowing Pickle Finance to be paid for the recent hack losses. Reportedly 99 votes have been in favor of the payout, allowing 9800 Cover Token, which would be used to cover the losses; however, as per Cover, the payout would not be enough to cover all the losses.

There are currently more than 34000 Pickle Claim tokens that are traded in the secondary markets by the token holders. The Holders can use one claim token for one Pickle DAI, which would be subject to a 100 percent payout approval by the Claim Validity Committee.

Technical Advisor at Cover Protocol said that there is a need for mass adoption of insurance protocols in the DeFi industry to help the financial sector. This helps to mitigate the risk, and the Cover Team intends to allow users to  Our job is to enable users to experiment with game-changing protocols while also remaining hedged against exploit risk.”

There have been many attacks on the DeFi protocols in the past, which has led to massive loss of funds creating vulnerability and instability in the Decentralized Finance Markets. Akropolis, KuCoin, Origin, and several other crypto firms have suffered the attacks in the recent past, which calls for a more stringent and reliable insurance protocol to ensure stability to the DeFi protocols against such attacks.

Disclaimer

The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.

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