• General

  • Insurance coverage for smart contracts vulnerability - rewards distribution

We received many feedback from the community requesting for insurance coverage for their staked OHM against a smart contract hack/ exploit.

The DAO has been working with insurers to secure smart contracts vulnerabilities coverage and has managed to successfully obtain one with InsurAce.

This is an optional purchase and the premium is 4.5% p.a. to cover against loss of insured’s sOHM due to an unauthorized, malicious or criminal act aiming at exploiting Olympus smart contracts’ code vulnerabilities.

The loss needs to permanently irreversible with no means of repayment or recovery by any parties in the future.

It can be in form of being moved to another address or addresses, which the insured cannot access or control permanently; and the loss is directly linked to the wallet address which the insured used to purchase the cover or the insured provides evidence to prove the ownership of the impacted wallet address.

As part of the partnership, InsurAce is offering premium discounts to insurance buyers and rewards to Olympus.

The offer is a 5% discount on premium to insurance purchasers and another 5% reward to Olympus.

We have asked InsurAce if it is possible to pass on all the savings to insurance purchasers and the answer is "Yes".

Within the DAO, we decided that the community should vote on how the discounts are to be distributed:

Option A: 10% discount to insurance purchasers

Option B: 5% discount to insurance purchaser + 5% revenue share to Olympus

The initial launch will have a pool size of $10m. i.e. up to $10m in coverage can be purchased. After the launch, we will gauge the actual demand by the community and if demand outstrips supply, we have secured agreement with InsurAce on the option to increase the pool size by staking. This will enable the coverage pool size to be increased by a factor of 4 based on the amount Olympus stakes. If and when that happens, the DAO will discuss the amount to stake and thereafter present to the community for voting.

Please check out the FAQ document below.

FAQ document

Update:

Voting on Snapshot is now live https://snapshot.org/#/olympusdao.eth/proposal/0x1793d2eef3287e6a2638f3daf5e3da8fd283cfd4c105545c774ee9feaf32825a

[Update - Clarification]

Option A: 10% discount is a rebate i.e. receive 10% of the premium paid as rebate in the form of $INSUR

Should all the discounts go to insurance purchasers

This poll has ended.
  • P2E likes this.

Great initiative! I have been looking for ways to insure Ohm holdings but could not find one for the "token". A few questions please:

  1. Does this cover Ohm, sOHM, wsOHM?

  2. What about the fx-sOHM in Rari Fuse pools… and Abra ..

If the protocols that accept OHM variants as collateral are not covered, can they provide separate insurance protocol-centric rather than token-centric.

For example, one current insurer offers either token (roaming insurance) regardless where it is deposited.. or protocol insurance regardless of which assets are deposited.

I would love to see an option where we can choose insurance for sOHM, wsOHM, and Ohm that is collateralized on Rari etc. and ohmies get to choose which coverage to buy.

For now this only applicable to sOHM as this is a coverage for smart contract vulnerability risk on Ethereum.

OHM in one's web3 wallet is not covered.

wsOHM on Avalanche is not covered as these are not staked per se although the value reflects the staked amount since day 1.

Currently InsurAce only provides 4 types of coverage namely (i) Smart contract vulnerability, (ii) Stablecoin de-peg risk, (iii) Custodian risk and (iv) IDO event risk.

While the coverage is not token specific, the type of risk coverage we are getting i.e. smart contract vulnerability, precludes the coverage of OHM and wsOHM.

Fantastic work.

I believe 10% discount to purchasers is best. With gas fees as they are it is already off putting to many to get the coverage. You will probably need to spend ~$200 to even get the coverage.

10% off can give more incentive to purchase

    Mugen You can make payment via BSC, Avalanche or Polygon. Takes care of gas fees 😃

      Unslashed.finance and nexus mutual are two other potential options we could reach out to?

        Montbegon Yes. We are already in contact with Unslashed and provided them the info they require for underwriting. Currently awaiting their reply. Nexus and Bridge Mutual are on our cards too.

        • tex replied to this.

            Excellent proposal devoltaire! I know a lot of Ohmies have asked about insurance in the past and this is a great step towards enabling options for our community. One of the points mentioned in this proposal is the ability for the insurance pool to be expanded if we stake some collateral with InsurAce. My expectation is that demand will outstrip the initial insurance coverage and we will need to examine collateral staking. Given that assumption and the ability for users to purchase insurance through more gas-efficient chains, I think that splitting the discount between Olympus and insurance purchasers is more appropriate.

              Dom98000 Hi, there has been one claim submitted so far and it was not approved.

              Details are here: InsurAce 1st claim

              I have also raised this during our due diligence and response from InsurAce below:

              Quote

              <There has only been one claim so far and it has been rejected.

              But you can see from our data pages that we have a lot of capacity for payouts relative to the capacity of any individual protocol.

              So it would take a huge black swan event of numerous hacks on protocols we cover, at full capacity to ever not have the assets to payout.

              You could look at it as we have been lucky not to have had a payout so far. But at the same time, a payout validates our protocol and shows proof of concept so we are not against it happening>

              Unquote

                I was just about to buy insurance, yeah I want that 10% discount haha

                  I see insurace have only given us 4 stars (out of 5) 🙄 anyone know why?

                    Montbegon Got the reply from InsurAce team

                    <quote> It’s no cause for concern. Just standard for new listings and relatively young projects. <unquote>

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