Falcon Finance don launch $10M onchain insurance fund
Falcon Finance don announce say dem launch $10 million onchain insurance fund. Dis new fund go cover smart contract losses for their Bitcoin Layer 2 (L2) protocols wey dem build for OP Stack. Dem get money from Falcon Finance, strategic partners, plus small percentage from future protocol fees. Di insurance fund go divide im reserves across plenti stablecoins and go make yield through Aave. Coverage cap na $1 million per case and $5 million every year. To claim, users must do KYC plus community governance council must approve. Di fund wan make users trust and secure for Bitcoin L2 networks wey don suffer hacks before. Falcon Finance talk say their daily trade volume dey near $50 million and total value locked (TVL) be $200 million. Di insurance fund go start for mainnet in Q3. For Q4, Falcon plan to release governance token FALCON wey fit give holders vote and share for fees. CEO Jane Doe talk say dis move go make things secure, boost adoption, and set example for DeFi risk management. Onchain insurance dey grow with same plans from Mellow Finance, EigenLayer and Magik Finance. Market forecast say di whole onchain insurance sector fit reach $50 billion by 2025.
Bullish
Di launch of dedicated onchain insurance fund by Falcon Finance na beta sign for crypto market. E dey address smart contract wahala for Bitcoin Layer 2, di fund dey boost users confidence and risk management. Historically, insurance products like Nexus Mutual cover for DeFi don push capital enter market and increase protocol adoption. Short term, traders fit see more liquidity and activity for Falcon L2 platforms. Long term, dis move fit set new security standard, encourage other projects to do same and make market strong. Fund get clear coverage limits, yield model through Aave, and community governance wey show say e go help DeFi grow steady.