ether.fi selected Nexus Mutual on July 17 to provide crypto's largest-ever ETH Slashing Cover, protecting ether.fi's validators against up to 15,000 ETH worth of slashing penalties. The partnership addresses slashing risk as ether.fi continues seeing rapid adoption from retail and institutional audiences. ether.fi operates one of the largest validator sets on Ethereum, making slashing a real tail risk that this cover mitigates through protection securing against validator losses.
ether.fi Secures 15,000 ETH Coverage Against Slashing Penalties
The cover protects ether.fi's validators against up to 15,000 ETH worth of slashing penalties. This coverage was calculated to protect ether.fi in even the most extreme scenarios and represents more than all historical losses from ETH slashing combined.
Nexus Mutual provides this protection, which kicks in to secure against validator losses. As ether.fi operates one of the largest validator sets on Ethereum, slashing is a real tail risk for the platform.
ether.fi Strengthens Risk Management Infrastructure
Over the last year, ether.fi has been systematically strengthening their stack across infrastructure, risk management, operational security and real-time defense systems. Securing industry-leading protection against slashing risk for ether.fi users is critical as the platform continues to see rapid adoption.
ether.fi has $6B+ in AUM across Cash (crypto card), Stake (restaking), and Liquid (liquid restaking derivatives). The platform has established category dominance in crypto neobanking.
Leadership Statements on Partnership
Mike Silagadze, Founder & CEO of ether.fi, stated: "We've always believed the safest protocols will ultimately win. That's why we've invested heavily in audits, operational security, staking architecture, and now the largest insurance program in the industry. We are excited to partner with Nexus Mutual to make this a reality."
Hugh Karp, Founder of Nexus Mutual, said: "We've known the ether.fi team since before it was ether.fi, and they've been focused on risk from day one. Covering their users for up to 15,000 ETH in slashing penalties is a historic step, and we're proud they chose Nexus Mutual to take it with them."
Nexus Mutual is the first crypto insurance alternative. Since 2019, the platform has covered more than $7 billion against smart contract hacks, slashing, and other digital asset risks.
FAQ
What is the coverage amount in the ether.fi and Nexus Mutual partnership?
The partnership provides coverage for up to 15,000 ETH worth of slashing penalties for ether.fi's validators. This represents crypto's largest-ever ETH Slashing Cover and exceeds all historical losses from ETH slashing combined.
Why did ether.fi select Nexus Mutual for slashing protection?
ether.fi operates one of the largest validator sets on Ethereum, making slashing a real tail risk. Nexus Mutual provides protection that kicks in to secure against validator losses, which aligns with ether.fi's focus on strengthening infrastructure, risk management, and operational security over the last year.
