Why DeFi Insurance Needs a New Design

Technical insurance directly targets the potential of smart contract failures or attacks. Smart contract exploits are the best known form of technical risk in DeFi protocols. Nomad, Wormhole, Cream, Ronin, Badger DAO, Horizon bridge and Beanstalk have been some of the notable DeFi exploits of the last few months. These types of exploit are obviously unexpected and regularly result in irreversible losses in DeFi protocols. They are a natural candidate for insurance models.