stETH is currently covered for upto 5% slashing events. Is there a possibility of covering a broader range of events under insurance? For instance, if it were possible to somehow mint stETH out of thin air or the withdrawal key gets hacked or any other catastrophic event, can there be either centralized or decentralized insurance options to pay out stETH holders?
With over $1B locked and counting, it might be worth exploring these areas.
I think at some point Nexus or something other can provide a cover for that, but I don’t think it’s a good idea for DAO to cover that risk: it sounds like an individual decision.
That’s reasonable. Right now, Nexus does not include Lido. Is there any chance the DAO can reach out and make this available to its users?
It would be nice to be covered for smart contract failures and withdrawal signature related security issues. Such a feature could be then offered to all stETH holders so it’s a win for everyone.