YIELD App partners with Steady State to transform the cryptocurrency protection landscape

By Pavithra R

YIELD App, bridging traditional finance and DeFi via an app, has announced partnering with Steady State, a cutting-edge insurance protocol that is set to transform the DeFi and cryptocurrency protection landscape.

Currently, in its first stages of development, Steady State is pioneering a revolutionary new model in DeFi insurance that will insure platforms and protocols against a comprehensive range of risks. The firm will leverage data-driven risk-modeling governed and deployed through smart contracts to meet DeFi with an insurance solution as innovative as the platforms and protocols it seeks to protect.

DeFi has witnessed explosive growth over the past 18 months, with total value locked now standing at $60 bn from a little over $700 mn in January 2020. With this explosive growth, however, has come increased risk, and a number of platforms and protocols have been subject to hacks and exploits that have cost their users millions. There are only a few protocols that offer insurance to DeFi users, but these also covers only a narrow range of smart-contract-based risk events and putting the burden of insurance on the user, rather than the provider.

Steady State aims to solve this by developing a quantitative insurance model that is capable of collecting and analyzing a vast set of data on hacks and exploits to develop complex risk models that will allow for accurate, customized pricing of insurance at a platform level. This ecosystem will run on and be governed by smart contracts allowing DeFi insurance to meet the same level of trustless and efficient automation that has been the driving force behind the providers it seeks to insure.

“We have long been of the view that the DeFi insurance market is lacking. Our search for an adequate protocol for our own platform led us to take an interest in Steady State, which we believe has the potential to transform the cryptocurrency protection landscape.

As we have commented before, the one major factor holding back mainstream adoption of cryptocurrency is its risk profile. While no investment is risk-free (even, or especially cash in some regions) a high number of hacks and exploits has been discouraging for new users that might be convinced to enter the market if their assets were adequately insured,” said Tim Frost, CEO of YIELD App.

YIELD App, which to date supports more than 40,000 users globally to invest their USDT, USDC and ETH for an APY of up to 20%, is supporting Steady State with the view to becoming one of its first customers.

“Steady State is what every member of the DeFi community has been waiting for: an insurance product that understands and can accurately price the risks faced by platforms and their users. It shouldn’t be down to individuals to cover their assets in arbitrary pools — we need a system that looks a lot more like traditional finance to help reach everyone that stands to benefit from the new economy emerging on the blockchain.

We have been working closely with YIELD App from our earliest stages and will continue to do so over the coming weeks and months to develop and deliver a product we believe will break new ground in DeFi and cryptocurrency more widely,” said Jonathan Libby, CEO and founder of Steady State.