DeFi coverage protocol Nexus Mutual (NXM) has expanded the list of centralized exchanges eligible for incident protection. Users trading on Binance, Kraken, Coinbase, and Gemini can now buy protection in the event of an exchange being hacked or an extended downtime for withdrawals.
The project announced the new integrations Monday as part of its coverage expansion initiative. Users who buy coverage will be entitled to compensation if the custodian is hacked and the user loses more than 10 percent of their funds. Alternatively, the claim could be satisfied if the custodian suspends withdrawals for more than 90 days.
According to current data, coverage is quite expensive. For example, Binance's 10 ether (ETH) coverage requirement of 365 days requires paying a premium of more than 3 ETH or 30% of the coverage amount.
DeFi follows the idea of rebuilding the infrastructure of financial services and moving it into a fully decentralized structure, removing the need for third parties such as companies and governments. ...
