OpenCover: Protect your DeFi investments

Opencover is a DeFi insurance platform that offers protection against risks beyond the user’s control, such as contract failures and exploits. It allows users to purchase, manage and claim insurance transparently and automatically. This article will guide you through the process of getting covered on OpenCover, sharing my personal experience for better understanding.

What you will fins in this article:

What you need:

• A DeFi wallet (e.g., Rabby. You can download and start using Rabby Wallet in minutes, just check the articles about how to it on the desktop app, browser extension and mobile app).

• USDC, DAI or ETH to pay the cover. To acquire these tokens, you can use swap feature on Velodrome.

Opportunities with OpenCover:

• Protecting your DeFi investments.

• Ensuring peace of mind against unforeseen risks.

• Leveraging coverage for protocols with high growth potential.

Getting stated with OpenCover:

1)Access OpenCover: go to opencover.com and click on the “Get Covered” button.

2)Connect your wallet to proceed with the coverage customization.

3)Customize your coverage:

• Select the protocol: click on the first arrow to select the protocol. For example, I selected Extra Finance, which operates on Optimism and Base.

• Enter the Coverage amount: specify the amount you want to protect in USDC, DAI or ETH. I entered $3,600, which covers my total amount in Extra Finance.

  (Here's how I opened my position on leveraged farming on Extra Finance step-by-step)

💡Note: remember, if asset prices increase and your total value exceed the covered amount, only the specified amount will be insured.

• Select coverage duration: choose between 7 days and 30 days. I selected 7 days to see how it works.

4)View and confirm the quote:

• Below the cover customization, you’ll see the cover price. For my $3,600 coverage for 7 days, the cost was $6.24.

• Click on “View quote” to proceed.

  💡Note: the quote is locked for 60 seconds, after which it may need to be refreshed, potentially altering the price.

5)Get covered:

• Click on “Get covered” to finalize the protection process.

• Sign the transaction in your wallet to complete the process.

  💡Note: the protection becomes active 24 hours after the transaction, at which point you’ll receive a representative NFT.

By following these steps, you can safeguard your investments on Extra Finance and other protocols, ensuring that your DeFi Journey is secure and prosperous. I’ve personally tested with my own $3,600 coverage to demonstrate how straightforward and beneficial it is.

Reflection:

The cover provider for OpenCover is Nexus Mutual, one of the most reputable DeFi insurance platforms. Nexus Mutual’s backing of protocols like Extra Finance and Velodrome indicates a thorough review of their code and a determination that these are solid protocols with low probabilities of exploits or issues, reaffirming their robustness.

Lynn Brooke

This article serves educational purposes and is not financial advice. We encourage you to do your own research and be responsible for your actions in the financial space.