[drfrank]

Has an insurance market already arisen?

I.e. can I buy insurance for some percentage of my transaction against a bug swallowing the whole value of my transaction?

Seems like an opportunity to let an economic market drive more rigorous dev and test practices by giving shops with more rigorous practices lower fees.

[vmception]

yes, its pretty vibrant for the past 2 years. claims get made in advance and paid out unceremoniously with no fanfare (just like outside of the crypto space) but there could certainly be more fanfare and articles around that experience, since you can tell by this thread that people who should know about it don't know about it. You can find people in the discords of most communities who have the claims after an exploit who are like "yeah they paid" and move on, and you can look at the insurance protocol's contract to see it paid out for your own verification of that.

not sure if I've seen it for NFT collection contracts, but they're pretty robust and actively cater to the DeFi category of services.

here is a list of insurance protocols that also use a token for any number of reasons. its a whole category on the "marketcap" sites.

https://www.coingecko.com/en/categories/insurance

there are likely many well capitalized insurance protocols without a token but I don't know about them for that specific reason, which is a fun irony when wondering "but does this need a token?"

[everfree]

Yes. I'm not going to name drop for fear of it coming off as shilling, but I'm familiar with a couple DApps that are two-sided marketplaces for insurance on other DApps.

If you lose your money to a smart contract bug in the insured DApp, the insurers will reimburse you.

If you really trust the code of a certain app, you can earn revenue as the insurer on the other side of the trade.