CoverFi

CoverFi aims to help onboard millions of people to the DeFi ecosystem by making them feel more secure through a no-cost, continuous and easy-to-use insurance protocol for DeFi hacks.

So far this year $3 billion have been stolen due to hacks in DeFi protocols, the vast majority of losses were not covered by any type of insurance. The users affected by those hacks currently have no real option other than just accepting the losses. There are several existing insurance protocols but those are very technical and hard to use for mainstream users.

That’s where CoverFi comes in! CoverFi is a no-cost, continuous and easy-to-use insurance protocol.

Users deposit USDC into our protocol, and we use DeFi apps like Alluo to generate yield over the total premium deposited and we will use that yield to pay back the claims. The users will always have the option to withdraw the original amount paid as a premium with no loss. The insurance is kept active as long as the user does not make any withdrawals. Whenever they decide to withdraw, it is automatically canceled.

Once a hack occurs in any of the supported DeFi protocols, users can submit an insurance claim and receive the coverage as soon as the claim is confirmed by UMA Optimistic Oracle.

We do our best to abstract the technical terms related to insurance like premium or coverage, and make our UX super easy and intuitive so that users just need to worry about how much they want to be covered and make a deposit by clicking a button!

Once users deposit USDC with us, our contract deposits it into Alluo, minting IballuoUSD, which is an interest-bearing token that currently generates 7% APR. When the user decides to withdraw it, we will keep the accumulated interest as an insurance fee and give the principal back to the user. Their coverage will be active until they withdraw it. By that, we achieve no-cost and continuous insurance.

Once a user submits an insurance claim after being hacked on any of the supported DeFi protocols, our contract report it to UMA Optimistic Oracle to resolve it. After the settlement, users will receive push notification through Push Protocol and our contract automatically pays out insurance coverage to them if the claim is confirmed.

We use Worldcoin as Proof-of-Personhood for sybil resistance to make sure each purchaser is a unique person.

More details about each sponsor/technology we use are below:

@Alluo We deposit USDC to Alluo’s contract and receive IballuoUSD, which is an interest-bearing token and generates 7% APR. We only collect the generated interest as an insurance fee, so users don’t have to pay to be covered.

@UMA Protocol We use UMA to resolve and settle insurance claims. Any user can submit a claim that the hack has occurred at any time and resolve the claim through the Optimistic Oracle. If the claim is confirmed and settled through the Optimistic Oracle, our contract automatically pays out insurance coverage to the beneficiary.

@Worldcoin We use Worldcoin as Proof-of-Personhood for sybil resistance to make sure each purchaser is a unique person.

@Push Protocol We implement Push Support Chat, so users can contact us without exposing their email. We are also planning to notify users when their claim is settled.

@ENS We use ENS to perform reverse resolution of Ethereum addresses and display ENS domain and avatar for users.

@Polygon & @Optimism We use Polygon and Optimism to deploy our insurance smart contract deployed on the Mumbai testnet and Optimism mainnet.

Mumbai testnet: https://mumbai.polygonscan.com/address/0x7F822B960862B5864Ab0E3C205B275C31c6C5C6C

Optmism mainnet: https://optimistic.etherscan.io/address/0x417DD5176CCc76E6e22Eb2E49f7c16364E39297f

Gnosis Mainnet: https://blockscout.com/xdai/mainnet/address/0x476E30Ff936E03EE71E18f9B28B5A595eF054312/internal-transactions#address-tabs

@Next.js & Tailwind CSS & DaisyUI & Fleek The frontend is written in Typescript with Next.js used as the framework, and tailwindcss as well as daisyUI for styling. For the contract interactions, we use ethers.js. For the deployment, we use Fleek, so we don’t depend on the centralized hosting service. https://coverfi.xyz/