The Cost of a Protocol Hack
At Nexus Mutual, we protect individuals and funds against smart contract and economic risks, but did you know that we also have options for protocol teams?
With Native Protocol Cover, a team can provide their users with an embedded base layer of protection.
This way if a hack or other covered risk impacts the protocol, the community would be reimbursed in the time it takes to write a post mortem report.
Native Protocol Cover is a bargain when you consider the real cost of a hack.
@MitchellAmador from @immunefi put together a great article that digs into the true impact (linked below)
He found that on average, a hack will create $16M in direct losses, erase 50% of a protocol's market cap, and force a team to face a 6+ month recovery.
The unique challenges of open and immutable smart contract code, combined with increasing TVL in DeFi, means these threats arenât going anywhere.
Hacks happen. If a protocol can be exploited, eventually it will be.
World-class security is a requirement for todayâs leading protocols, but the best way to minimize risk due to smart contract hacks is through 3rd party coverage.
Nexus Mutual is the only provider in the space with the experience and underwriting capital to work directly with protocol teams.
If your team is ready to protect against the worst case scenario, get in touch with us today!