Unslashed Finance – an Ether-based decentralized insurance protocol – has reportedly secured $2 million to financially support its tokenized insurance solution. 

Specifically, the funding round – spearheaded by Lemniscap, P2P Capital and other investors – will reportedly provide Unslashed Finance with extra resources for its decentralized insurance protocol expansion, dedicated to crypto assets. 

The protocol reportedly functions via establishing a connection between individuals looking to purchase insurance for their assets, with investors planning to generate an uncorrelated yield.

Unslashed reportedly disclosed that its product offers “almost instant liquidity to insurance buyers and risk underwriters”, together with immediate collateralization. Via tokenizing coverage, the platform offers options for the insured to pay as they go, or offload the coverage if they have no interest anymore. 

The scope of the insurance reportedly includes exchange and smart contract hacks, validator slashing, stablecoin pegs, oracle failures and different kinds of risks that traditional companies do not have insurance for.

Since its initial private release in February, Unslashed Finance has reportedly sold $400 million in insurance coverage and secured $90 million in capital deposits. Its portfolio includes ParaSwap, Ethereum Lido Finance, Enzyme, Techemy Capital and others. 

Marouane Hajji, founder and Head of Unslashed, reportedly remarked that the development was entirely organic, and approximately one-third of the covered purchasers are protocols protecting themselves, 20% are crypto hedge funds and the remaining are DeFi power users.

Speaking of the future of blockchain insurance solutions, Hajji reportedly claimed that the banking and insurance sector “tend to be slow movers with regards to new technology.”