Native Arranges $25 Million Blockchain Insurance For Team Rizzo

According to CoinDesk, digital-asset insurance broker Native has successfully arranged a $25 million blockchain-based insurance cover against hacks for Team Rizzo. Team Rizzo operates machine-learning businesses and staking validator services on Bittensor, a prominent cryptocurrency-driven AI network. The London-based company acted as both broker and underwriter, utilizing its own syndicate and capital pool on Nexus Mutual, a decentralized insurance platform that supported Native since October of last year. This coverage safeguards against smart-contract hacks that could result in the loss of Bittensor tokens (TAO), which are essential for validating the network’s proof of stake (PoS) consensus mechanism. Hacks remain a significant concern within the crypto ecosystem, where insurance coverage is often limited, especially in experimental areas like staking or decentralized finance (DeFi). Recently, Bybit, a major cryptocurrency exchange, suffered a $1.5 billion loss due to hackers linked to North Korea. Nexus Mutual, established in 2019, offers an alternative insurance model for the burgeoning DeFi sector by encouraging a community of members to invest in blockchain-based syndicates. This approach is somewhat akin to the Lloyd’s of London insurance market, which allows syndicates of investors to back various risks. Native, which manages one of the larger capital pools on Nexus Mutual, also functions as a traditional broker, providing access to Lloyd’s for specific types of crypto-related insurance coverage. The swift arrangement of the Rizzo validator risk on Bittensor, completed in just four weeks, was a notable achievement, according to Native co-founder Dan Ross. He highlighted that this is the first instance of Bittensor being underwritten. Team Rizzo sought to purchase their own policy to attract stakeholders to their validator and ensure their security. Ross noted that creating a new product, underwriting a new protocol, and securing third-party smart-contract cover with a $25 million limit in such a short timeframe is remarkable, as traditional insurance processes could take three to six months, if feasible at all. Following the Bittensor policy, coverage for the bitcoin staking platform Babylon is expected in the coming weeks, Ross added. Bittensor founder Jake Steeves praised Team Rizzo for their strategic approach, stating that they have become one of the most consistent and high-performing validators on Bittensor.