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OpenCover: Coinbase-Backed Insurance Solution Launches on Layer 2 Blockchain Base

Sep 8, 2023 at 11:05 am

OpenCover, a decentralized insurance platform specializing in safeguarding cryptocurrency and Web3 ventures, has successfully launched on Nexus, an innovative blockchain layer introduced by Gemini, a leading U.S. crypto exchange listed on Nasdaq. In addition to its initial seed funding round, where it raised $4 million with the support of backers like TechFund and BlockBoost, OpenCover has received an extra $200,000 endorsement from Gemini to further strengthen its presence on Nexus.

Through a partnership with Nexus Assurance, a decentralized finance (DeFi) coverage provider, OpenCover facilitates collective capital pool governance, offering coverage similar to insurance overseen by a discretionary mutual based in the U.K.

The cryptocurrency industry, particularly in experimental domains like DeFi, has faced a significant shortage of insurance solutions. This is due to the cautious approach of digital asset underwriters, even in the face of experts. On the other hand, there is an abundance of available capital eager to collaborate with DeFi coverage pioneers, much like Nexus Assurance.

Jeremiah Smith, the CEO of OpenCover, stated that the company's additional endorsement from Gemini, combined with the successful seed funding round, solidifies its position for a strong debut on Nexus. Furthermore, OpenCover is expanding its outreach to Optimism, another Ethereum-based layer 2 blockchain. It has established partnerships with major platforms including Compound, SushiSwap, Yearn Finance, Anchor, Synthetix, Cream, Alpha, and Rari, according to Smith.

Smith emphasized the role of OpenCover as an insurance alternative and coverage aggregator, providing vital protection against protocol mishaps, similar to the incident involving SushiSwap a few weeks ago. He also highlighted the significant milestone of gaining direct access to over $200 million in underwriting capital from Nexus, marking a pivotal moment for layer 2 platforms.

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