Phase 5 - DeFi Insurance Integration

DeFi has taken the world of finance and Web3 by storm and grown from $0 to $190b (during the 2021 peak) in a matter of a few years. Such growth and traction have turned many good and bad actors into the space. DeFi protocols since its inception have been exploited/hacked for a total value of $2.4b. As complexity increases with DeFi platforms exploits will continue to happen where both whitehat and blackhat hackers look to find and utilise these gaps to theirs. With the development and iteration of virtual machines, languages and dev tools get better and as experienced devs start to mature into this sector the number of exploits should in theory decrease over time. As with any new technology it takes time and experience to build resilient and safe systems.

At the same time, DeFi innovators have already started to model and put together DeFi Insurances. Just as normal insurance works for real-world assets the same concept is applied to insurance in the DeFi space. An investor be it retail or institutional can invest in X protocol (i.e., provide liquidity) and then take out insurance based on his investment size to have protection over potential exploits. DeFi insurance has had exponential growth as end users see the value and want to offset some of the risks of investing in DeFi. Today, many people know of Nexus Mutual Insurance, however, there are many more insurances that individuals are not aware of. Ponder aims to integrate into different insurance providers and get quotes from each based on user input. Given the previous phases and their capabilities individuals can research, bridge, invest and insure their position by merely clicking a few buttons without ever having to shop around. Much like today's Web2 world when an individual wants to take out insurance for their home or car there are plenty of providers that carry this effort out of finding and comparing the results. The same exact concept will be made available for insurance and mentioned phases within Ponder.