It’s not all peaches and cream…

Cream Finance hack resulting in losses of $18.8m

Decentralized Finance protocol, Cream Finance, was the victim of an exploit resulting in the loss of around $18.8 million. In the current state of the ecosystem, DeFi has the cream of the crop in both innovation and hacks. Bright Union believes that coverage is the only way to protect yourself.

Innovation is happening at the speed of light in DeFi, which is, to an extent, increasing the likelihood of hacks for two reasons. First, the total value locked is immense — estimates suggesting $157 bn — and consequently, the potential rewards for successful hackers is immense. This is attracting the best in the business of cyber crime. Secondly, the speed of innovation is resulting in less thorough testing and scrutiny than adequate. Even audited protocols can have design flaws, through which hackers can find ways to exploit. These exploits are damaging the reputation of DeFi and may impact the innovation fuelled subspace of crypto and create a culture of fear amongst first time DeFi users.

Risk is a fundamental concept with investing. However, the Cream Finance exploit and other potential protocol hacks are ‘known unknown risks’. This is a risk which people know exists and know it could happen to them. However, the specifics of which, are a mystery. The good news is that ‘known unknown risks’ are manageable.

Nexus Mutual and Bridge Mutual have respectively $6 million and $80k in active coverage for the Cream protocol*. For a user wishing to protect their assets, coverage was a one time payment of 2.60% of the maximum amount covered at Nexus Mutual, and 7.73% at Bridge Mutual, both for an annual policy. Those who bought this coverage are examples to us all — investors who are effective at managing these ‘known unknown’ risks.

In this situation, any coverage is better than none. However, as an aggregator, Bright Union will provide a single interface for effortless comparison of coverages ensuring you have the best cover for the risk at hand. It’s news of these hacks which drive us, the team, to create the easiest way for users to cover their digital assets and to minimize these risks.

Increasing trust and security are also key to increasing institutional adoption of DeFi. This will allow for enhanced capital inflow to further fuel top-quality innovation. As an objective and transparent DeFi cover platform, at Bright union we believe that together with our partners, we can help build this environment of trust and security.

Don’t let yourself become a victim of a protocol hack. Be Bright and buy coverage for your digital assets.

Bright Union is launching its Mainnet in early September. Buying coverage will never be easier.

#JointheUnion #TheFutureIsBright

*Figure for Nexus Mutual published in their discord channel. Data for Bridge Mutual taken from their app.

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About Bright Union

Bright Union is launching the world’s leading aggregator and accelerator for the crypto risk markets. Our mission is to make the crypto risk markets work. On our decentralized crypto coverage platform, crypto users can cover their assets, stake and cover the community, and earn guaranteed yield through Bright Staking with embedded coverage.

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