Published on: March 19, 2025 Updated 2 times since publishing
As DeFi continues to grow, so do the risks associated with onchain transactions. Smart contract vulnerabilities, governance attacks, and bridge exploits have resulted in billions lost, highlighting the need for effective protection solutions. That’s where OpenCover steps in.
Led by George Harris, Growth Lead at OpenCover, the company is revolutionizing onchain security by providing Transaction Cover and Protocol Cover, ensuring users can interact with DeFi with confidence. By working with top underwriters and leveraging decentralized models, OpenCover is bridging the gap between traditional financial protections and the unique risks of DeFi.
In this SafetyDetectives interview, George shares how OpenCover is making blockchain protection more accessible, the evolving risks in DeFi, and what’s next for the company in its mission to make onchain transactions safer.
Can you introduce yourself and your role at OpenCover
Absolutely, my name is George and I’m the Growth Lead at OpenCover My role is all about expanding our reach and making onchain cover more accessible whether that’s through partnerships product marketing or engaging with the DeFi community. We’re focused on making the onchain world safer by offering protection that’s easy to understand and simple to use.
What are the flagship services provided by OpenCover
OpenCover provides two key types of protection transaction cover and protocol cover
Transaction Cover
This is a first-of-its-kind product launched in partnership with Nexus Mutual. It transfers blockchain transaction risk away from the end user for the first time. This is a game-changer for businesses and individuals transacting onchain It brings blockchain transactions to parity with TradFi protections removing a major barrier to adoption while maintaining the advantages of transparency lower fees and instant settlement.
Protocol Cover
For users engaging with DeFi protocols OpenCover provides Protocol Cover powered by leading underwriters. This protects against smart contract vulnerabilities governance attacks oracle manipulation and liquidation failures If a covered protocol is exploited users with active cover can claim compensation.
To give you an idea of real-world impact Euler Finance saw over $3m payout following an exploit due to a smart contract vulnerability and Perpetual Protocol users received over $300K after an oracle manipulation attack These are real cases where protection made a difference allowing users to recover funds that would have otherwise been lost
Together these two cover types help users transact and interact with DeFi with more confidence knowing their funds are protected on the move, and at rest.
Onchain transactions are often targeted by exploits and hacks What are the most common threats users face and how does OpenCover help protect them
DeFi presents a range of risks and bad actors are constantly finding new ways to exploit vulnerabilities. Some of the biggest threats include:
- Smart contract vulnerabilities Even well-audited protocols can have hidden flaws that hackers exploit leading to drained liquidity pools or stolen funds
- Oracle manipulation Attackers can distort price feeds to exploit lending and trading protocols forcing liquidations or manipulating collateral values
- Governance takeovers Malicious actors can accumulate governance tokens and push through harmful protocol changes
- Bridge exploits Cross-chain bridges have been some of the biggest targets in crypto with billions lost due to security flaws
- Social engineering attacks These bypass technical defenses by exploiting human error and goodwill. The recent Bybit hack is a prime example where an employee was tricked into providing access to sensitive information leading to an exploit. Even the best security measures can be bypassed if human error is involved.
At OpenCover we mitigate these risks by providing clear reliable protection; whether it’s through Transaction Cover which, protects assets on the move or Protocol Cover which safeguards yield bearing onchain assets at rest.
OpenCover offers different types of coverage. What are the key differences between onchain insurance and traditional insurance models?
The biggest difference is what is being protected and how coverage is structured. Traditional insurance typically protects against financial losses caused by custodian mismanagement For example FDIC insurance covers users if a bank fails because banks hold customer funds and have a responsibility to safeguard deposits.
DeFi is different because users retain full custody of their assets at all times. With a self-custodial wallet, users don’t rely on a central entity to hold their funds Instead transactions happen directly on public blockchains which eliminates traditional custodian risks but introduces technological and economic risks like protocol failures oracle manipulation and smart contract exploits.
OpenCover provides protection specifically designed for these risks By leveraging decentralised underwriting models and smart contracts OpenCover makes protection more transparent accessible and efficient than traditional insurance models
DeFi cover is still a young industry which is why it’s often called cover or insurance alternatives rather than traditional insurance But the core idea is the same users get protection against financial losses in ways that are aligned with the unique risks of blockchain-based finance
As DeFi evolves, what emerging risks do you see on the horizon?
DeFi is constantly evolving, and new risks are emerging as the ecosystem grows. Some key areas to watch:
- Restaking risks – With the rise of protocols like EigenLayer, users are rehypothecating assets, which introduces new attack vectors.
- MEV (Maximal Extractable Value) risks – As block producers extract value from transactions, this could lead to new types of exploits.
- Cross-chain vulnerabilities – The push for interoperability means bridges and cross-chain messaging systems will continue to be prime targets.
- Regulatory uncertainty – While not a technical risk, shifting regulations could impact how DeFi protocols and insurance models operate.
Our goal at OpenCover is to stay ahead of these risks by continuously expanding coverage options and working with protocols to improve security practices.
What’s next for OpenCover? Are there any upcoming features or partnerships you can share?
We’re focused on enhancing our embedded coverage solutions, working closely with DeFi protocols to integrate protection at the point of deposit into a protocol. Additionally, we have some exciting partnerships in the pipeline that will make it even easier for users to access coverage directly within their favorite DeFi apps.
Ultimately, our mission is to make DeFi safer and more inclusive, and we’re just getting started.