Unslashed and Enzyme partner to provide a more efficient insurance proposition for DeFi

Enzyme will provide the asset management infrastructure enabling Unslashed to leverage the security, maintenance and development work around the Enzyme ecosystem...

Unslashed and Enzyme partner to provide a more efficient insurance proposition for DeFi

Enzyme, a blockchain asset management platform, has announced a new partnership with Unslashed, a protocol that enables the creation of structured insurance products, to build out a new capital-efficient DeFi insurance protocol — allowing collateral to earn a yield on top of standard premiums and USF mining.

Recently unveiling its version 2, Enzyme offers everything one would need to run a secure and capital-efficient strategy. Aside from supporting a huge range of assets, Enzyme plugs into all of DeFi making it possible to create a strategy and earn a yield on it efficiently.

“Unslashed reached more than $100M in TVL during a private launch. Those who know Unslashed will know that this is the smartest designed insurance infrastructure available in DeFi. The capital efficiency baked into its design serves as a win-all for underwriters, insurance buyers & stakeholders.”
– The Enzyme Team

The Unslashed approach to insurance

Unslashed focuses on building a protocol that enables the creation of structured insurance products called “Buckets” – a Bucket is a diverse collection of insurance policies that are carefully designed, assessed, priced, and put together for capital suppliers to underwrite.

Each Bucket has a different risk profile, contains different policies, and generates a different yield. In traditional finance, similar products are called ILSs. They offer a yield that is uncorrelated to the market whilst creating a necessary bridge between finance and insurance.

Unslashed provides insurance policies on smart contract risk, validator slashing (PoS networks), exchange hacks, stablecoin pegs, and more. This is combined with a qualitative and quantitative approach covering multidimensional blockchain risks to ensure policy buyers are always protected.

Policy protection is only as good as the claims process underpinning it. The claims process with Unslashed is unbiased and relies on independent assessors and arbitrators. This guarantees that claims are treated fairly and in a non-discretionary manner.

The last component of a successful insurance marketplace is capital efficiency. Insurers sit on huge amounts of capital from underwriters. Allowing that capital to sit and gather dust is just not efficient.

This is where Enzyme comes in…

Enzyme as a natural infrastructure choice

Enzyme’s DeFi infrastructure supports over 200 assets and is connected with all types of protocols. Enzyme Vaults can handle lending, AMM pools (e.g. Uniswap and Curve pools), staking (e.g. Curve LP tokens or just plain ETH), semi-automated farming strategies, leverage, and more.

The modular and extensible design empowers teams like Unslashed to build alongside and extend the protocol to a new use-case enabling them to go to market much faster and at a fraction of the cost.

By leveraging Enzyme as infrastructure — Unslashed can lean on Enzyme’s network of developers and security experts (Enzyme Council, Chain Security, PWC, and Open Zeppelin), outsource the maintenance burden, and free themselves up to focus on building out their insurance protocol.

Why supply capital (underwrite) on Unslashed today?

Supplying capital to underwrite Buckets on Unslashed offers a set of advantages including:

Advantages of buying cover on Unslashed

The advantages of buying cover on the Unslashed and Enzyme combined system include:

Unslashed community benefits

Enzyme community benefits

Next steps

Unslashed will next run this through their governance process after which the capital deployment can begin. A bridge between the two protocols has already been built and fully audited by Chain Security.