Unslashed Finance, a decentralized insurance protocol built on Ethereum, has raised $ii million to fund its tokenized insurance product, highlighting some other positive use example for blockchain applied science.

The funding circular, which was led past Lemniscap, P2P Majuscule and other investors, volition aid Unslashed Finance in expanding its decentralized insurance protocol for crypto avails. The protocol works by connecting people willing to buy insurance for their assets and investors seeking to earn an uncorrelated yield.

Unslashed claims that its protocol enables "almost instant liquidity to insurance buyers and run a risk underwriters," also as constant collateralization. By tokenizing coverage, the platform allows the insured to pay as they go or simply offload the coverage if they no longer need it.

The insurance covers exchange and smart contract hacks, validator slashing, stablecoin pegs, oracle failures and other types of risks that traditional firms practise non insure.

Since its initial private launch in February, Unslashed Finance has sold $400 million in insurance coverage and collected $90 meg in uppercase deposits. Its clients include ParaSwap, Ethereum Lido Finance, Enzyme, Techemy Capital and others.

"The growth was purely organic," Marouane Hajji, founder and CEO of Unslashed, tells Cointelegraph. He explained that roughly one-tertiary of the covered buyers are protocols protecting themselves, 20% are crypto hedge funds and the remaining are DeFi power users.

Regarding the futurity of blockchain insurance products, Hajji says the banking and insurance industries "tend to be deadening movers with regards to new engineering science."

He continues:

"Although some insurance companies were experimenting with public and individual blockchains pretty early on on (2015/2016), and McKinsey published a report back then explaining how blockchain could take several use cases in the insurance manufacture, existent-life applications on public blockchains are not the focus of traditional manufacture players."

The blockchain-based insurance industry appears to be growing in light of the DeFi boom, every bit more users seek out coverage against centralized exchange hacks. Presently, the coverage is quite expensive, although this could modify as the market continues to mature.

Credit bill of fare issuer American Limited has even commented positively on the cryptocurrency insurance market but noted that major issuers are taking a very cautious approach. The business organization stems from the fact that cryptocurrencies like Bitcoin (BTC) are finer a bearer asset similar cash, which entitles the possessor to the underlying value of the asset.

"Consequently, when someone's bitcoins are stolen, it's difficult to establish rightful ownership without actual possession of that bitcoin," Justin Grensing of American Express said.