DeFi insurance, short for Decentralized Finance insurance, refers to a type of insurance coverage provided within the decentralized finance space. It offers protection to users who participate in DeFi platforms against various risks such as smart contract vulnerabilities, hacking attacks, or asset losses. DeFi insurance is typically provided by protocols that pool funds from users and use them to reimburse those who suffer losses due to covered events. It aims to enhance the security and trustworthiness of DeFi applications by mitigating the financial risks associated with using these platforms.
