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Next-Gen Cover Protocol FairSide Network Raises $4.2M to Transform Crypto-Insurance

Wednesday, 17 November 2021 11:30 AM

FairSide

Cost Sharing DAO Solution Offers New, Better Way to Mitigate Loss Events for Crypto Holders

DETROIT, MI / ACCESSWIRE / November 17, 2021 / FairSide Network, a next-generation cover primitive working to offer crypto holders a better alternative to DeFi insurance protocols, has raised $4.2 million in an early staking round to the protocol's capital pool with participation from Alameda Research, Dominance Ventures, Jump Capital, Figment Capital, and Daedalus Angel Syndicate.

FairSide aims to provide members with blanket coverage. A single membership that covers more than one blockchain, project and type of loss. Coverage is more inclusive and designed to follow the user. This presents many advantages to crypto holders as they maneuver not just DeFi, but all of the cryptoverse. Crypto holders will no longer need to manage multiple policies, pay numerous premiums, or wait for pools to be created in order to get coverage. Through this unique offering, members will be afforded cover automatically without the need to buy a specific project policy.

FairSide, Wednesday, November 17, 2021, Press release picture

"Insurance in the space is underdeveloped and viable solutions are needed. FairSide's single membership, cross-chain, multi-cover approach is like nothing we have seen. It has the makings of something big and we are excited to be a part of it," said Brian TK Lee, VC at Alameda Research.

Existing crypto-insurance offerings' over-reliance on scarce liquidity pools and the sky-high premiums they carry, sometimes as high as 40% or more, make them too costly and insecure to provide sufficient protection in the event of a smart contract failure, exchange hack, exploit, or any other unforeseen external event.

"The vast majority of today's crypto investors interact with multiple DeFi protocols, oftentimes without any form of insurance coverage," says James Parillo, Figment Capital. "Existing insurance protocols are broken and Fairside aims to solve many of the biggest problems with existing offerings. "

FairSide's solution as a cost sharing DAO socializes losses using the fundamental principles of traditional insurance. Utilizing core risk management principles, FairSide has lowered the risk of staking, created comprehensive cover offerings, introduced a low single fee, and increased contributor rewards. In essence, FairSide takes the best elements from the centuries-old traditional insurance industry and decentralizes them.

"We're extremely excited to support FairSide, who we feel re-designs the way cover is thought about in the space. FairSide aims to offer users engaging in DeFi protocols the same benefit they would gain from car insurance in the traditional world, except rather than bury users in legal jargon and paperwork, it's through a decentralized cost sharing network where the parameters of claims are governed through a DAO," says Alexander Opeagbe, Founding Partner at Dominance Ventures.

"We are delighted to back Brandon and the FairSide team on this journey. It is exciting to see a veteran from the traditional insurance industry take their learnings and build an innovative solution using the efficiencies and transparency provided by the blockchain," Ivailo Jordanov of Daedalus Angel Syndicate added.

FairSide Advantage

FairSide has developed a critical innovation when staking DeFi cover protocols. Its diversified Network Staking approach removes the direct impact of loss as claims are paid. Contributors have spread their risk across the market and are no longer at risk of liquidation. This low correlation of risk leads to superior capital efficiency and staking rewards. This advancement in staking not only protects contributors from liquidation, it allows for the widest and most fair coverage offering in the space.

FairSide aims to become an indispensable part of all crypto investor's strategy as the DeFi ecosystem grows and users demand increasingly robust security on par with protections offered by traditional finance. By combining the best parts of DeFi and traditional insurance models, FairSide can offer all users the peace of mind that their funds are safe and secure.

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Media Contact:

Alaina Stowers
[email protected]

SOURCE: FairSide

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Company Update
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