Earn Up to 1300% APY Farming with DeFi Insurance by Defi Dad

Previously, I’ve discussed smart contract bug insurance as a linchpin for DeFi adoption. DeFi insurance will enable more users to risk participating in new money legos with peace of mind knowing they have a new kind of DeFi “car insurance” to protect their assets but 2 major challenges have been holding back DeFi insurance, namely Nexus Mutual.

• Minimum coverage paid upfront for timeframes that don’t reflect the fast pace of DeFi to move funds instantly (ie 30 days on Nexus)
• Sign-up + KYC required to buy Nexus smart contract cover

When Cover Protocol launched in the fall of 2020, it was an exciting next step to test the demand for a KYC-less DeFi insurance product. With the introduction of Cover, we also saw a new opportunity for Cover to cover Nexus and Nexus to cover Cover--in other words the birth of reinsurance in DeFi! Unfortunately, if you fast forward to late December, Cover’s own smart contracts suffered another exploit related this time to infinite minting, which led to Cover’s token going to $0 (they’ve since relaunched a new token) and the Cover application dropping from nearly $100M in TVL to about $5M TVL at its lowest point.

While Cover suffered a major setback, it did prove that there’s market demand for KYC-less smart contract cover. When you return to Nexus as a reliable mutual for purchasing smart contract bug protection, it makes sense that Armor.Fi would be the next iteration to help grow this market for DeFi insurance.

Armor - A New DeFi Insurance Distributor

Armor is a decentralized brokerage for cover, underwritten by Nexus Mutual's insurance. One can protect their