The DeFi insurance company insurAce is giving out $12 million to 155 investors out of 178 as a compensatory fund to subsidize their loss as a result of the May Terra collapse.
As stated in the post InsurAce plans to compensate 155 investors a sum of $12 million as a result of the crash of Terra and its token in May.
Terra May Collapse
It is worth noting that the crash was initiated following the de-pegged from USD and plunged below the 1:1 ratio which also result in the fall of its token from over $100 to almost zero. The crash was so disheartening to the Terra ecosystem and the whole crypto sphere as the collapse affected them and the crypto is just recovering from it.
However, the Terra Labs executive has been facing a lot of lawsuits as a result of the collapse, especially in South Korea and the US.
As reported by Cryptolifedigital, As a result of Terra’s collapse, the South Korean institutional and retail investors lose a huge amount of capital. The cryptocurrency exchange in South Korea met and announced the plan to compensate the investors in that region.
The update released via IsurAce’s Twitter handle on the 1st of August stated that it has taken up the mantle to make the whole UST investors who had taken up insurance policies with it. It is worth noting that InsurAce debuted in the crypto market in April 2021 to provide risk protection services to the DeFi industry. This way, DeFi users can insure their investments against unforeseen risks like stablecoin de-pegs and bankruptcy.
In the course of the recent interview, the InsurAce CMO, Dan Thomson, revealed how the protocol’s timely helped aid the situation.
Terra Crash Was A Big Hit For InsurAce
The InsurAce took a big hit as a result as stated by the on-chain data. The report stated the protocol’s estimation in the de-peg claims is $11.7M while it only collected $94,000 in the premium payments.
To get this done, the CMO said InsurAce has deployed a community-driven approach, with its independent native governance token ($INSUR.) holders executing the claims assessment process.
Facts About InsurAce
InsurAce has built a full-spectrum cross-chain product line that covers over 140 protocols, 3CEX and 1 IDO platform running on Ethereum, as well as Solana, BNB Smart Chain, Polygon, Fantom, Gnosis, Arbitrum, Avalanche, Harmony, Celo, Cronos, Boba, ICON, Ontology, Moonriver, Moonbeam, Bifrost, Aurora and Optimism. InsurAce.io currently has a live product deployed on Ethereum, BNB Smart Chain (BSC), Polygon and Avalanche.