Figment and Nexus Mutual launch “ETH Slashing Cover” for additional protection against validator slashing risks
Staking infrastructure platform Figment and crypto protection provider Nexus Mutual have partnered to offer Figment customers extra protection against validator slashing risks with the launch of “ETH Slashing Cover.” Here are the key points:
1. Comprehensive coverage: ETH Slashing Cover aims to provide comprehensive coverage against validator double-sign slashing risks. This refers to penalties Ethereum validators may face for engaging in malicious behavior, such as signing conflicting blocks or messages.
2. Impact of slashing: Slashing can result in the loss of a portion or all of the validator’s staked assets and can also affect their reputation on the network.
3. Up to 100% coverage: Figment customers can potentially protect themselves against double-sign slashing events for up to 1 ETH per validator with ETH Slashing Cover. By combining Figment’s existing coverage with this new offering, customers can achieve up to 100% coverage against slashing risks.
4. Figment’s robust infrastructure: Figment operates robust infrastructure that reduces the possibility and magnitude of double-sign slashing risk. The partnership with Nexus Mutual allows delegators to further hedge against these risks while minimizing the impact on rewards.
5. Growing DeFi cover sector: DeFi cover, as an alternative to traditional insurance services, is a growing sector within the crypto industry. In 2022, it paid out $34.4 million worth of claims, according to OpenCover.
Nexus Mutual has protected over $4.4 billion in crypto assets since 2019, paying out over $17 million in claims.
Hot Take
The collaboration between Figment and Nexus Mutual to offer ETH Slashing Cover is a significant step towards providing enhanced protection for Figment customers against validator slashing risks. With the growing popularity of DeFi cover in the crypto industry and the potential impact of slashing on a validator’s assets and reputation, this offering provides a valuable solution. By combining Figment’s infrastructure with Nexus Mutual’s coverage, customers can minimize risk and achieve up to 100% coverage against slashing events. This partnership demonstrates the industry’s recognition of the need for comprehensive protection in the staking ecosystem.
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