Introduction
Insured Vaults: the new primitive for institutional DeFi risk transfer.
API access is currently only available to vetted integrators Request access by contacting [email protected]
OpenCover and Nexus Mutual have joined forces to deliver insured DeFi yield at institutional scale for the first time. Building on the industry’s longest-standing experience in onchain risk transfer and the deepest network of onchain underwriting capital, Insured Vaults introduce a new primitive that addresses the hardest challenges in onchain insurance including variable length policies, premium streaming and native onchain composability. This enables virtually any DeFi vault to become insurable without changes to the associated protocol or primary point of deposit.
User journey
Insured Vaults work by wrapping underlying vault shares and binding their market value to an insurance or cover policy. The user journey can be summarized as follows:
Yield-bearing vault shares (e.g. Morpho Smokehouse USDC) are deposited to an associated Insured Vault.
Coverage begins once the deposit request settles in the Insured Vault (typically within 2 Ethereum blocks, about 30 seconds). There is no upfront cost to the user for coverage.
Premiums are streamed from the yield accrued in the wrapped vault shares, eliminating the need to manage renewals. Coverage rolls automatically as long as shares remain deposited.
Upon withdrawal of the vault shares from the Insured Vault, coverage ends.
Compatibility
Insured Vaults effectively extend yield protocols by enabling users to add coverage to their positions on demand and can be chained with native deposit and withdrawal actions.
Insured Vaults are compatible with the ERC‑7540 asynchronous vault standard, enabling straightforward integration with all common vault interfaces.
Compliant and non‑custodial
Insured Vaults can be access-controlled and are non‑custodial at all times. Deposits can be subject to integrator whitelists while withdrawals are unconditional, guaranteed and enforced onchain.
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