Unslashed Finance, a company that provides insurance products for crypto assets, today announces its $2M funding round.
Among its investors are Lemniscap, P2P Capital, Bitscale Capital, Chainlayer, and several angels, including Enzyme founder Mona El Isa, founder of Kyber Loi Luu, founder of Deversefi Will Harborne and founder of Argent Itamar Lesuisse.
Since its initial private launch, Unslashed has sold coverage for the amount of $400M and collected $90M in capital deposits with zero marketing spent. Unslashed is on track to outpace the launches of most companies in the insurtech industry by the end of the year.
Its clients include decentralized exchange aggregator ParaSwap, infrastructure provider and validator for Ethereum Lido Finance, Ethereum-based protocol for decentralized on-chain asset management Enzyme, and several crypto hedge funds such as Techemy Capital who leverage insurance to hedge a certain number of risks.
The current market cap for crypto exceeds $1.2 trillion, and these assets carry a certain amount of risk for their holder. In 2020, around $500 million were stolen by hackers through DeFi exploits or occasional exchange and smart contracts hacks. Since traditional insurance firms have failed to provide coverage for such risks, Unslashed has built a crypto-native solution.
The team behind Unslashed has used a quantitative approach to model the risks and build out a decentralized insurance protocol that enables almost instant liquidity to insurance buyers and risk underwriters, ensures constant collateralization, and guarantees transparency. By tokenizing coverage and using “money streaming,” it allows maximum flexibility and freedom - the insured pay as they go and can instantly stop the policy to offload it. The coverage is provided by investors willing to underwrite various risks and build a diversified portfolio to earn a non-correlated yield. Unslashed insurance covers exchange and smart сontract hacks, validator slashing, stablecoin pegs, oracle failures, and other crypto-related risks.
“We at Unslashed believe insurance is the key factor to sustain and accelerate crypto adoption,” Marouane Hajji, Founder of Unslashed, says. “With the launch of our project, we strive to power the growth of the crypto economy and protect its participants from significant risks. We’ve been fortunate to partner with investors who deeply understand both the traditional finance industry and crypto.”
“Defi is currently experiencing a rapid innovation cycle and as the sector matures, crypto native insurance will play an increasingly important role in supporting this growth. Unslashed takes a unique approach compared to its peers by bundling un-correlated risks into buckets. We believe Unslashed’s design will provide for unmatched capital efficiency enabling it to offer the widest coverage at the lowest rates'', states Shaishav Todi, Partner at Lemniscap.