InsurAce, a DeFi insurance platform that offered cover against a UST de-peg event, has confirmed that they will be paying $12 million in USDT to users who hold a valid policy. Dan Thomson, the CMO of InsurAce, confirmed to us that we will get a lot of money and recover quickly. Thomson went on to say something.
This shows the importance of insurance in the industry and in any smart investor's strategy. There are ways to reduce risk with the help of cryptocurrencies. We founded InsurAce in order to make crypto safer for everyone. InsurAce explains what happened and how to make a claim if you have a valid policy in a blog post. When the Time Weighted Average Price TWAP 10 day average drops below $0.88, a claim can be made. This event took place on 13 May 2022 at 5: 00 am UTC and was acknowledged by InsurAce. The process involves proving ownership of a valid policy and UST derivative token, such as aUST at the time of the de-peg.
InsurAce asks customers who purchased a policy and did not have UST in their wallet at the moment of purchase to contact them if they did hold it at least ten days before the de-peg event. While it is not sure if it will pay out to these customers, it states,
All eligible cover holders must submit a claim request by May 20th, 2022, 23: 59: 59 UTC via the email on their website.
Protocols that aren't paying out yet compare favorably to the other leading UST de-peg insurer, Unleashed Finance, which is not yet paying out. This is because of their policy that UST must trade below the TWAP of $0.87 for two weeks.
The investors who have taken that policy will have to wait a while to start their claim process. After two weeks if the Terra network is halted, claims will still be eligible, according to a community moderator from Unslashed Finance.
Unleashed Finance says they are likely to pay out in the next two weeks, but urges users not to sell their UST as the conditions of the claim are not yet fulfilled. A DeFi platform, Nexus Mutual, offers protocol insurance against a loss of funds, not a loss of value. Its Anchor insurance is unlikely to pay. It does not offer UST de-peg insurance.