#73: Jeremiah Smith from OpenCover on DeFi Insurance

The Accountant Quits Podcast

Since 2017, over $8billion has been lost on-chain due to smart contract hacks, infrastructure issues and rugpulls.

The figure becomes even larger when you count phishing attacks and scam coins.

Yet today the vast majority of on-chain transactions and protocol positions aren’t protected… for example if you look at DeFi current TVL which is around $80billion, there is only about $100m which is covered or insured against protocol risk.

One company that is on a mission to make DeFi safe and accessible is OpenCover.

Since 2022, OpenCover has protected thousands of businesses and individuals against on-chain transaction and protocol risks.

On Episode 73, I spoke with its Co-Founder & CEO, Jeremiah Smith, who provided us a short masterclass into DeFi cover and Insurance, and how finance & accounting professionals at web3 startups & DAOs can mitigate their on-chain risks.

Download the State of DeFi Insurance Report

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Topics Covered:

(0:00) TAQ Intro

(1:08) Episode Intro

(3:05) Jeremiah’s background

(5:00) 3 main onchain risks

(8:15) Financial impact of onchain risks

(10:03) Best practices for keys management

(11:30) Protecting against transaction & post-transaction risk

(14:08) How to mitigate protocol risk

(16:45) Thanks to our sponsor Harris & Trotter

(18:49) Insurance for tokenized T-Bills

(20:52) How to choose DeFi Cover

(26:10) When should CFOs consider DeFi insurance

(28:35) Overview of OpenCover

(32:56) Thanks to our sponsor Web3 Finance Club

(34:38) Is OpenCover an underwriter

(37:42) Pricing

(38:54) The future of AI & DeFi Insurance

(41:45) OpenCover partnership

(44:28) Challenges for adoption

(46:11) Closing Thoughts

(47:14) Jeremiah's Pablo Picasso Maxim

(48:44) Reach out to Jeremiah