InsurAce, a decentralized finance (DeFi) insurance company, has announced that it’s set to compensate 155 investors who were victims of Terra (LUNA) collapse.
May 2022 was a month that can never be forgotten in the history of the crypto industry. A month that recorded the largest ever crypto collapse.
TerraUSD (UST), the algorithmic stablecoin of Terra blockchain, lost its peg. At the same time, Terra (LUNA), which is now renamed Terra Classic (LUNC), dropped from around $100 to fractions of a Cent within a few days.
Read Also: Mike Novogratz Breaks Silence on Terra Collapse, Speaks on Galaxy Digital’s Investment in LUNA
According to InsurAce in a blog post, $12 million will be spent to compensate 155 investors that were grossly affected by the Terra collapse.
InsurAce was specifically launched in April 2021 to provide risk protection services to the decentralized finance (DeFi) industry. It’s meant to insure users’ investments against sudden collapse or bankruptcy such as that of Terra ecosystem.
Due to the increasing insurance claims, InsurAce has to spend about $11.7 million to compensate investors. It’s worth noting that the firm only received relatively $94,000 in insurance premiums from UST investors.
The DeFi insurance firm has a token codenamed INSUR and specially created for investors and stakers to vote on various issues. It was a voting process that found 155 claims eligible, while 18 claims were found ineligible.
Read Also: Hacktivist group Anonymous Vows to Expose Do Kwon over Terra (LUNA) Collapse: Details
Reacting to the development, Dan Thomson, the CMO of InsurAce, said:
“The decentralized voting was conducted by InsurAce’s community of Claims Assessors who hold and stake INSUR Tokens. And at the conclusion of the Voting process, they approved a total of 155 UST de-peg Cover claims and 18 rejected as not ineligible in line with the Stablecoin de-peg Cover terms and conditions.”
Also, the CMO disclosed that the firm has a plan to compensate investors and stakers since the money used for compensations belongs to them.
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