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Strategy Insurance (OpenCover)

Stake DAO offers optional on-chain insurance for supported yield strategies through OpenCover. This cover is underwritten by Nexus Mutual and protects your strategy position against defined on-chain risks.

At a Glance

  • What it covers: Smart contract bugs and major on-chain economic failures (oracle manipulation, liquidation failures, governance takeovers).
  • What it protects: Your Stake DAO strategy position plus the underlying protocols used by that strategy (multi-protocol cover).
  • Where to buy: During deposit or from the cover dashboard in the Stake DAO app.
  • Who provides cover: Nexus Mutual, distributed via OpenCover.

How the Cover Works

OpenCover provides multi-protocol cover for Stake DAO strategies. This means a single cover protects:

  1. The Stake DAO strategy itself, and
  2. The designated underlying protocols used by that strategy.

Example: if you insure a Stake DAO Curve strategy, the cover can pay out for a covered incident on Stake DAO or Curve, not just Stake DAO.

Supported Protocols and Chains

The current multi-protocol annex includes:

  • Stake DAO
  • Curve DEX
  • Pendle

Cover availability depends on the strategy and chain. In the app, supported strategies show an OpenCover option during deposit.

OpenCover is available on:

  • Ethereum
  • Base
  • Arbitrum
  • Optimism

Covered Risks

Covered incidents include:

  • Smart contract bugs or errors causing unintended behavior
  • Oracle manipulation or failure
  • Liquidation failures
  • Governance takeovers leading to malicious upgrades

Not Covered

The cover does not apply to:

  • Phishing, private key loss, malware, or user error
  • Market price moves (unless the event is an oracle manipulation/failure)
  • Asset depegs of tokens issued by the protocol
  • Rug pulls or admin actions taken within protocol permissions
  • UI or website issues where the protocol functions as intended
  • Bridge failures
  • Events disclosed publicly or occurring before your cover start date

Pricing and Coverage Terms

Cover is priced as a percentage of the insured amount, typically quoted monthly. Rates vary by strategy and chain.

As a reference, OpenCover has offered multi-protocol cover around 0.37% per month for Stake DAO strategies, but pricing can change.

To purchase cover, see the Buy Strategy Cover guide.

Claims: What You Need To Know

To submit a claim under Nexus Mutual terms, you must:

  • Be a Nexus Mutual member at the time of claim
  • Complete KYC
  • Pay the Nexus Mutual membership fee
  • Not be in a restricted jurisdiction

Claims also require:

  • Evidence linking the impacted account to the claimant
  • Submission after the cool-down period and during the cover period (or grace period)
  • A covered event as defined in the terms
  • Claim amount limited by your cover amount and any applicable deductible
  • Reimbursements from other sources can reduce or offset claims

If your cover NFT is transferred, the transfer must be between addresses controlled by the same entity for a valid claim.

FAQ

Is this mandatory?

No. OpenCover is optional and can be added per strategy.

Does it cover all strategies?

No. Only strategies marked as supported in the app are eligible.

Does it cover price volatility?

No. Market price movements are excluded unless they qualify as oracle manipulation or failure.

Is it separate from Stake DAO rewards?

Yes. It is a standalone insurance product. It does not affect your rewards.

Can I buy cover after depositing?

Yes. You can add cover later from the dashboard, but events before the cover start date are not covered.

Who pays claims?

Claims are reviewed and paid by Nexus Mutual according to the cover terms and annex.