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How Does Decentralized Insurance Protect against Smart Contract Exploits?

Users buy coverage for smart contracts; if an exploit occurs, a DAO assesses the claim and reimburses the user from a shared, token-backed capital pool.
Greeks.Live22.11.25

How Does Decentralized Insurance Protect against Smart Contract Exploits?

Decentralized insurance protocols allow users to purchase coverage for funds locked in specific smart contracts. If an exploit occurs and funds are lost, the insurance protocol's DAO assesses the claim.

If approved, the user is reimbursed from a capital pool that is funded by premium payments and backed by the protocol's token holders, who take on the risk.

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