Blockdaemon Blog

Why Blockdaemon's Industry-First Staking Slashing Insurance is a Gamechanger

Daemon News
Jun 16, 2022
By:
Conor
Keville
&

Earlier this year, we announced the rollout of our industry-first staking slashing insurance.

This innovative offering is designed to protect Blockdaemon’s customers — including Fortune 500 enterprises, banks, custodians, and trusts - from the downsides of blockchain staking slashing events.

This blog will outline the top three reasons why our slashing insurance can help you securely stake Proof-of-Stake (PoS) assets with Blockdaemon today.

Want to hear more about how Blockdaemon can help you with your Blockchain journey? Contact us today to chat more about our blockchain solutions, or read on to get a closer look at what’s new.

What is Slashing?

As with most PoS blockchains, good behaviors are encouraged through rewards.

Validators on the network who attest and propose blocks to the blockchain receive rewards as a percentage of their stake.On the other hand, bad actors on the network who are inactive or are dishonest validations are subject to a penalty referred to as slashing. To discourage malicious validator behavior, the following can be done:

  • A predefined percentage of a validator’s stake can be lost.
  • In addition, some protocols completely destroy (i.e. slash) the stake or remove the validator from the network for the current epoch, or permanently.

Therefore, to ensure your investment is not affected by slashing occurrences, Blockdaemon has designed the industry’s first slashing insurance product.  

Top 3 Benefits of our Slashing Insurance

Validator risk, loss, theft, or bad actors are among the top security risks associated with staking.

To ensure you receive reliable rewards, it’s critical you choose the most secure validator to stake your crypto assets. Here are the top three reasons why our slashing insurance makes Blockdaemon the right validator choice for you.  

Benefit #1: A Dedicated Insurance Policy

Currently, Blockdaemon supports over 50 assets for general node services and exactly 29 cutting-edge PoS networks.

Protecting clients from slashing risks is a core principle of our business.This is composed of two key insurance policies:

  • Slashing insurance. Paid out in full if, for example, a node goes down.
  • Third-party policy. We worked with Marsh, the world’s leading insurance broker and risk advisor, to create this best-in-class service for all your staking needs.

Our insurance helps create a 360-degree secure staking environment.

Benefit #2: Added Value to the Client Experience

Blockdaemon’s slashing insurance adds further value to our clients’ staking experience.

This staking experience combines world-class technical knowledge with robust security. This applies across both Blockdaemon public validator and white label staking. At Blockdaemon, we know nodes, and we understand that running a validator node to stake cryptocurrency involves technical know-how to prevent any disruption in the staking process. We ensure our nodes have over 99.9% uptime to maximize your staking returns.

With 60% of our workforce comprising engineers, this insurance policy further underlines our dedication to delivering a high-quality, reliable, and secure staking service.

Benefit #3: A Key Pillar of our Four Layers of Risk Mitigation

All of the above factors contribute to our industry-leading four layers of risk mitigation to avoid downtime and protect our customers from any risk of loss.

As a result of our dedicated teams, Blockdaemon can deliver seamless scaling and failure resilient infrastructure with 99.9% node uptime. In addition, our engineering-first approach guarantees our commitment to constantly improving and innovating our risk mitigation practices. Our insurance policy forms a core pillar of our layers of risk mitigation. Start Securely Staking With Blockdaemon TodayStaking is an easy way to help you grow rewards from your crypto assets by putting them to work.

With Blockdaemon, you can start securely staking 29 PoS assets today.

To help get you started, choose from multiple of our resources, including:

Start growing your rewards today, and we’ll take care of the rest so you can focus on your core business functions.

Have any more questions? Check out our dedicated FAQs section or get in touch with our team today.

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