DeFi security firm Quantstamp pilots hack protection program

Quantstamp is hoping to insure user funds in case of a hack, though similar programs have struggled in the past


J.K2507/Shutterstock modified by Blockworks


Quantstamp is rolling out DeFi hack protection for US-based users.

The product will recoup clients of the crypto asset security firm in the event their funds are lost in an exploit, and is the latest such attempt to insure users as hacks remain a prevalent risk. But previous hack coverage products have encountered hurdles, and it remains to be seen whether Quantstamp can clear them.

Quantstamp was founded after the 2016 DAO hack as a security auditing platform and began considering providing hack coverage as early as 2018, according to Sebastian Banescu, the company’s head of insurance. The product, which Banescu compared to Apple Care for DeFi, is launching in the US with approval from the North Carolina Department of Insurance.

Users can pay Quantstamp to guarantee their holdings on Aave, Compound, Curve, Lido and Uniswap. The company said the product would cost 2.55% to 4.28% of the covered amount.

Quantstamp is not the first company to try insuring users against hacks. A report from the DeFi protection provider Opencover listed 23 DeFi risk coverage projects and $34.4 million in claims paid out last year. Hacks remain a major risk for DeFi investors, with $699 million being lost to hacks in the crypto space in Q3, according to a report from Certik. Still, hack coverage has seen uneven success so far.

Jeremiah Smith, CEO of Opencover, said that there is currently more capital available to underwrite hack risk than there is demand for hack coverage.

Read more: Upbit updates cold wallet policy in bid to thwart hackers

“So far, the main challenges [are] on the risk pricing,” Smith said. “If the yields are low, and the premiums are high, it’s not always worth it to insure a position on one of these protocols.”

Banescu said users will be drawn to Quantstamp because of its regulatory status. 

“If we as an entity who’s offering this service don’t want to pay out, there’s a regulator who can force us to pay out,” Banescu said.

Smith said prices for DeFi coverage should decrease as protocols stop updating as frequently, since exploits often happen as a result of updates. Uniswap v3, for instance, has yet to be hacked since going live in 2021, meaning insurance providers face less risk when underwriting assets on the protocol. 

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Akash is a general-purpose compute platform with GPUs, storage, LLM training or inference, and validator hosting through its two-sided marketplace.


The SEC could allow half a dozen or more such funds to launch at once, Ark Invest CEO says


2023 saw a decline in a16z crypto funding, but the behemoth VC firm teased what it’s excited for next year


“Iran Unchained” launched a new version of its grant platform to make donations to activists easier


The stablecoin marks the first time a regulated European bank has made a euro-pegged stablecoin available on a crypto exchange


Build it and they will come, perhaps, but making crypto easier to use is turning out to be just as important


Amid moves by Itau Unibanco and Nubank, the country could serve as “a proof of concept” for TradFi-crypto integrations, industry research exec says