We are incredibly proud to announce one of the most anticipated features in the entire DeFi space: an innovation that very few operators in the world can offer their users. Today we take a giant step toward making decentralized finance not just accessible, but far better protected.
Until now, our main focus has been breaking down barriers to entry. We told you about the integration of Morpho and its Vaults inside our application, solutions built with a clear goal: simplify access to DeFi, automate yield strategies, and let anyone optimize their assets in a few clicks. We removed the technical complexity. But we knew that one fundamental pillar was still missing to complete our vision: protecting capital from the technical risks of Web3.
Today we fill that gap. We are thrilled to announce the integration of on-chain cover: protection that users can activate directly on their funds, if they choose to.
How does it work?
Through our technology partnership with OpenCover and Nexus Mutual (the leading provider of on-chain cover in the industry), we have built a protective shield directly into the unflat app.
One important clarification, because transparency comes first for us: Nexus Mutual is not a traditional insurance company and this is not a regulated insurance policy. It is discretionary cover provided by a mutual: the terms are public and on-chain, and claims are assessed by the mutual’s members through a transparent claim assessment process that anyone can verify.
When you deposit your funds into Morpho vaults (such as those on the Base network), you can activate the cover with a single click. The protection operates directly on the blockchain and shields your capital from the infrastructural risks of Web3:
- Smart contract bugs and hacks: if an attacker finds a flaw in the code and drains funds from the underlying protocol.
- Oracle manipulation: errors or attacks on data feeds that artificially distort asset prices and create losses.
- Liquidation failures: technical malfunctions that lock or damage deposited funds.
- Governance attacks: malicious code upgrades pushed through that put deposits at risk.
(Important note: the cover protects against technical software risks. It does not cover normal market price volatility or the loss of private keys by the user. Payouts are subject to the claim assessment process and to the limits set in the cover terms.)
Benefits for users
- Yield with more peace of mind: you can enjoy DeFi yields knowing the main technical risks of the underlying protocols are covered.
- Simplicity: buying cover in Web3 has traditionally required complex processes and hostile interfaces. With unflat, everything is natively integrated and can be activated instantly.
- Transparency: the cover terms are public, on-chain, and verifiable by anyone, and Nexus Mutual’s claim assessment process is public too. No surprises, no hidden clauses.
If you want to dig deeper into the solution we propose, we recommend reading the full terms and conditions of the service.
We want the finance of the future to be a safer place for everyone. With this new feature, unflat combines the high efficiency of Morpho vaults with an institutional-grade protection layer. For a layer-by-layer look at how your deposits are protected beyond the cover, read how we protect your funds on unflat or explore more DeFi savings guides on our blog.
Disclaimer: unflat is not a bank and deposits are not covered by government deposit guarantee schemes. Yields are variable and on-chain cover reduces certain technical risks but does not eliminate them. Never deposit funds you cannot afford to lose.