Insurance-backed Smart Contracts

Another interesting use case of DeFi 2.0 would point at insurance-backed smart contracts. DeFi works on the principles of transparency and features an open-source infrastructure. Therefore, people with limited technical experience can face considerable difficulties in addressing due diligence and risk assessment for DeFi protocols and smart contracts. Now, DeFi 2.0 crypto can resolve the issue with insurance on smart contracts, which can provide guarantees for a user’s deposits in return for a fee. As of now, such platforms are under development and have to depend profoundly on configuration of smart contracts.