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DeFi insurance payouts amounted to $34.4M in 2022: Report

Published 03/21/2023, 11:00 AM
Updated 03/21/2023, 01:00 PM
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According to a Mar. 21 report published by decentralized finance analytics firm OpenCover, DeFi insurance companies paid out $34.4 million in claims in 2022. In context, only $36.9 million of such claims have been paid out since OpenCover began tracking the data. Notable payouts include $22.5 million during the collapse of the Terra Luna ecosystem in May 2022 and $4.7 million from the collapse of crypto exchange FTX in November 2022.

Despite the surge in payouts, OpenCover said only $231 million worth of funds in DeFi protocols had been insured as per its data, representing just 0.5% of the total value locked in the DeFi industry. Cointelegraph reported on Jan. 5 that DeFi security exploits rose by 47.4% yearly in 2022 to $3.64 billion. Global blockchain-related crimes, excluding financial crimes, amounted to $13.7 billion during the year, wrote Chinese blockchain security firm LianAn Technology.

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