Digital-Asset Insurance Broker Secures $25 Million Blockchain-Based Cover for Team Rizzo
Native, a digital-asset insurance broker, recently announced that it has arranged $25 million of blockchain-based cover against hacks for Team Rizzo. Team Rizzo is known for operating machine-learning businesses and staking validator services on Bittensor, a popular cryptocurrency-driven AI network.
Broker and Underwriter
Based in London, Native acted as both a broker and an underwriter for this transaction. They utilized their own syndicate and capital pool on Nexus Mutual, a decentralized insurance alternative that supported Native since October of last year. The insurance cover provided protects against smart-contract hacks that could lead to the loss of Bittensor tokens (TAO) used for validating the network’s proof of stake (PoS) consensus mechanism.
Addressing Hacks in the Crypto Ecosystem
Hacks are a significant concern in the cryptocurrency ecosystem, especially in more experimental areas like staking and decentralized finance (DeFi) where insurance coverage is limited. Just last week, Bybit, a major cryptocurrency exchange, fell victim to North Korea-linked hackers who stole $1.5 billion.
Nexus Mutual and Alternative Insurance
Introduced in 2019, Nexus Mutual offers an alternative form of insurance cover for the emerging DeFi sector. It encourages community members to invest assets into blockchain-based syndicates, similar to how investors back risks in the Lloyd’s of London insurance market through syndicates.
Fast and Efficient Cover
Native, known for running one of the larger capital pools on Nexus Mutual, also serves as a traditional broker, providing access to Lloyd’s for certain types of crypto-related insurance. Notably, the swift arrangement of cover for Team Rizzo on Bittensor in just four weeks showcases Native’s efficiency in the insurance market, according to co-founder Dan Ross.
Expanding Coverage
Following the Bittensor policy, Native plans to provide cover for the bitcoin staking platform Babylon in the near future. Bittensor founder Jake Steeves expressed confidence in Team Rizzo’s performance as a validator on the network.