Following the historic drop in the price of the stable coin of Terra Network, UST, some insurance protocols in the digital currency industry have stated that they will pay for the damages to the holders of UST tokens. Meanwhile, the implementation of Terra’s founders’ plan to compensate UST and Luna holders is still unclear.
InsurAce, one of the insurance protocols active in the DeFi industry, whose insurance coverage includes the decline in the value of the stable UST, confirmed a total of $ 12 million in damages, according to CryptoSlit. Tetra Token (USDT) will be paid to consumers who have insured their assets under this protocol and are entitled to compensation under this insurance policy.
Dan Thomson, director of marketing at Insure S, said users of the protocol would be reimbursed and reimbursed as soon as possible:
This event highlighted the importance of the role of insurance in the digital currency industry and their presence in the strategy of every smart investor. The digital currency market has never been risk-free, but there are ways to reduce that risk. That’s why we launched Inshore S to make the digital currency environment safer for everyone.
In this article, the Insure S team outlines the latest developments for UST and the Terra network in general, and explains how users of this protocol can receive compensation if they have valid insurance. Under the insurance protocol, Insure S users can claim compensation if the weighted average price (TWAP) or the average price over a period of time is less than $ 0.88.
Read also: Your founder compensates the owners of Luna and UST; but how?
The price fell below the weighted average of $ 0.88 on May 13 and was confirmed by the Inshore S team. dollar coin.
Insure S asked users who kept this StableCoin in their wallet for at least 10 days after the UST fell that if they had purchased insurance in the past and did not have UST in their wallet at the time of purchase, their team is still in touch. . However, Insure S has not provided any guarantee of compensation to such users.
The InShor S team said:
These consumers are not explicitly covered by this insurance policy, but we intend to liaise with this flow; Especially considering that this is a very complex nature.
It is worth mentioning that the holders covered by this insurance must submit their application by May 20 (May 30) with the same email as they registered on the website.
The comparisons you read below are mainly in the interest of other insurers, which also cover the decline in the value of the stable UST coin. The Unleashed Finance Protocol, for example, does not currently have a plan to pay damages, as their insurance policy stipulates that their weighted average price for two weeks must be below $ 0.87 in order for its holders to be eligible for compensation.
Investors using Unlimited Finance insurance will have to wait a while to file a claim. The insurance protocol team said that if your network crashes again and UST transactions stop, consumers’ claims for damages will be valid in two weeks.
Unlisted Finance said on Twitter that it would probably start paying consumers in two weeks, but stressed to its consumers that “they should not sell their UST because the terms of the insurance claim have not yet been met.”
Nexus Mutual, another insurance platform active in the field of defa, has policies that cover the loss of capital rather than the fall in “value” of its policies. Therefore, this insurance is unlikely to pay damages to UST holders.
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