Fearful of being slashed on Ethereum? Here’s a staking service with on-chain insurance.
Institutional staking provider Chorus One is partnering with Nexus Mutual to bring insurance coverage for stakers on Ethereum. The company will be one of the first node providers to purchase on -chain staking coverage from Nexus Mutual to protect its users from slashing, Hari Iyer, marketing manager at Chorus One told Blockworks. Staking has been a relatively appealing source of income following the Shapella upgrade for institutional investors. “Institutions are looking for a safe source of yield, but no matter how much protection you have, how good the infrastructure set up is, there can be incidents of downtime or slashing,” Iyer said. Slashing is a penalty for validators who engage in dishonest or inactive behavior. Although it is extremely rare, penalties can be severe, Iyer explained. Validators could lose a cut of their stake or be removed from a network completely if they are slashed. “When staking your ETH, even with the best technical set-up and expertise, mistakes...