PolkaCover Partners Up With Band Protocol to Deliver Global Crypto and Insurance
Less than 1% of all DeFi, Crypto and NFT assets are adequately insured — yet hacks and exploits in blockchain applications are all too common. In 2020 alone, there were 17 major DeFi hacks resulting in over $154M in lost funds.
Available insurance products for DeFi and crypto are not widely accessible, have limited coverage and can be very expensive. There is a lack of transparency in data used from traditional insurers to settle claims and the all-too-common delayed or absent claim payouts.
Team PolkaCover is delighted to announce that we have formed a strategic partnership with Band Protocol to protect and insure users against smart-contract exploitations, breaches and failure. This partnership will allow the PolkaCover protocol to be able to leverage real-time data, provided by Band Protocol in a secure manner, from leading multinational insurance providers directly.
“Polkacover is thrilled to work with Band Protocol, our oracle of choice with significant competitive advantages including scalability, low-cost, customizability, and a key focus on decentralization on an oracle network of 72 validators. Together, both teams will bring widely accessible and affordable insurance coverage from traditional & decentralized insurance providers for all of DeFi and crypto users.”
Kunal Sadani, CEO & Founder of Polkacover
Why Band Protocol?
The PolkaCover platform will require direct connections with the traditional insurance providers for quoting and policy issuing. To ensure end-to-end reliability and security for Polkacover users, we require the most decentralized and low-latency oracle solution primed for scalability. We are excited to choose Band Protocol, the emerging leader for scalable oracles, to bridge real-world data and the PolkaCover DeFi platform.
Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts on-demand and in real-time. The project is backed by a strong network of stakeholders including Sequoia Capital, one of the top venture capital firms in the world, and Binance Labs. Working with Band Protocol has allowed our team to identify some key competitive advantages over alternative oracle solutions when working with DeFi Insurance:
- Low-Cost & Scalable Solution
Band Protocol’s oracle mechanism is based on BandChain, an independent high-performant blockchain, built specifically for oracle computations. As opposed to having oracle architecture on Ethereum which is prone to congestion, this protects Polkacover users from consuming delayed or invalid data. In addition, in avoiding Ethereum transaction fees, this is critical for Polkacover to lower the transactional and administrative costs of Insurance policies and coverages while delivering cost-effective insurance products for the crypto world.
- End-to-End Customizability
Polkacover developers can create custom oracle scripts on BandChain that specify any external data source or API, enabling Polkacover to scale as more insurance providers are onboarded and expanding coverage options.
- This will also streamline the onboarding process for insurance providers upon the launch of BandChain Phase 2 where insurance providers will be able to create premium oracle scripts to monetize their insurer APIs for decentralized applications to utilize and collect revenue directly on-chain.
- Decentralized With No Central Authority
Integrating with Band Protocol for oracles allows Polkacover to leverage a growing set of 72+ validator nodes on the BandChain validator network. Each validator is required to stake BAND tokens to participate in the data request process, ensuring skin-in-the-game and the highest security guarantee to perform their jobs honestly.
- This in turn also benefits Polkacover to focus on our key product offering without deviating focus to creating our own oracle solution or curating a set of our own validators for each insurer.
“With DeFi eclipsing $40 Billion in total value locked, the demand for secure and reliable on-chain insurance has never been more paramount. Working with Polkacover to leverage Band Protocol oracles to connect to traditional insurance providers is a critical leap forward to satisfy this demand and protect the wider crypto community from breaches, failures and exploitations which are all too common in the blockchain innovation process.”
Soravis Srinawakoon, CEO & Co-Founder of Band Protocol
We are excited to work closely with Band Protocol in the long-term as a strategic partner, bringing the best DeFi and crypto insurance to the wider crypto community.
About Band Protocol
Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. Band Protocol enables smart contract applications such as defi, prediction markets, and games to be built on-chain without relying on the single point of failure of a centralized oracle. Band Protocol is backed by a strong network of stakeholders including Sequoia Capital, one of the top venture capital firms in the world, and the leading cryptocurrency exchange, Binance.
What is PolkaCover?
PolkaCover is a global Defi-Insurance marketplace that will provide several insurance products geared in providing safeguards for Crypto, DeFi & NFT asset users from over 120 countries. Individuals can use the upcoming PolkaCover marketplace to search, compare & buy multiple insurance products backed by traditional insurers or through our community governed P2P insurance platform.
PolkaCover is being built on the Polkadot ecosystem, it aims to be the missing link that will connect the mass crypto market users with a unique marketplace to provide them insurance coverage on their crypto, DeFi & NFT Assets.
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