DeFi insurance claims amounted to $34.4 million in 2022: Report

ambcrypto.com:

Decentralized finance (DeFi) analytics firm OpenCover released a report on 22 March, revealing that DeFi insurance companies paid out $34.4 million in claims in 2022.

Notable DeFi claims in 2022 include $22.5 million from the Terra [USDT] ecosystem’s demise in May and $4.7 million from the demise of crypto exchange FTX in November.

In context, since OpenCover began tracking the data, insurance companies have only paid out $36.9 million in claims.

Despite the increase in payouts, only $231 million in funds in DeFi protocols had been insured, representing only 0.5% of the total value locked in the industry, the report mentions.

DeFi insurance has grown to include eight major categories: protocol loss coverage, stablecoin de-peg coverage, yield token coverage, custodial account coverage, audit (smart contract bug) coverage, slashing coverage for professional validators, and other customized coverage.

The report mentioned:

“At the time of writing, the total value of underwriting capital pools tracked by OpenCover amounts to $286 million (186k ETH) with a low of $210 million and high of $394 million in the last 9 months. The current value is 26% lower than the period maximum in USD terms.”

Source: OpenCover

As per a January report published by the Chinese blockchain security firm LianAn Technology, DeFi exploits across blockchains worldwide totaled $3.64 billion in 2022. This represented a 47.4% surge over the $2.44 billion loss in 2021. Despite an 80% drop in total value locked (TVL) during 2022, the number of incidents increased. The majority of exploits were directed at Ethereum [ETH], BNB Chain [BNB], and Solana [SOL].

In 2022, 51.5% of the 167 notable incidents occurred in audited projects, while 48.5% occurred in non-audited