OpenCover and L1 offer custom portfolio cover, allowing asset managers, family offices, and HNWIs to protect onchain holdings, backed by Nexus Mutual.

OpenCover & L1 pilot bespoke cover for HNWIs and asset managers, shifting protocol risk off onchain portfolios. Underwritten by Nexus Mutual.

DENVER, CO, UNITED STATES, February 28, 2025 /EINPresswire.com/ -- Today OpenCover and L1 announced a pilot during the crypto flagship conference ETHDenver, allowing financial advisors to offer institutional-grade risk protection on L1 user portfolios. Policies are backed by Nexus Mutual, the leading onchain underwriter with over $5.5 billion in blockchain risk underwritten since 2019. The collaboration delivers unprecedented financial guarantees to institutional Decentralized Finance (DeFi) investments supporting growing DeFi adoption among more traditional players.

L1 provides a suite of blockchain wealth and asset management tools, allowing users to self-custody their assets while working with professional advisors. The new pilot enables OpenCover’s insurance alternative to be purchased by L1 users, enabling protection against smart contract bugs, oracle manipulation, liquidation failure, and governance attacks on leading DeFi protocols, including Aera, Uniswap, Aave, Aerodrome, Morpho, and Compound.
Jeremiah Smith, CEO of OpenCover, said, "Institutions demand the same guarantees they get from traditional markets. By partnering with L1, we make it seamless for sophisticated investors to invest in DeFi with comprehensive protection, strengthening the bridge between traditional finance and the onchain world."

Founded in 2022 by Y Combinator alumni Miguel Kudry (CEO) and Alex Sismanis (CTO), L1 has rapidly evolved into the go-to platform for onchain wealth management. The addition of OpenCover’s coverage offers an extra layer of security, giving advisors the confidence to recommend DeFi strategies without compromising user experience or asset safety.

"Integrating OpenCover’s robust cover directly into our platform is a game changer,” said Mehdi Brahimi, Head of Institutional Business at L1, “It addresses fiduciary responsibilities and risk management, unlocking new opportunities for institutions to embrace DeFi with complete confidence."
The initial success of this pilot has already set the stage for a full-scale launch within the coming months. At that point, every L1 user will have ready access to OpenCover’s protection suite, reinforcing the broader institutional migration into DeFi.

About OpenCover

Founded by Y Combinator alumni Jeremiah Smith and Yury Oparin, OpenCover (https://opencover.com/) partners with top tier underwriters to protect institutions and individuals against onchain risks, delivering security and assurance for DeFi participants.

About L1

L1 (https://l1.co/) is building the operating system for onchain wealth and asset management. co-founded by Miguel Kudry and Alex Sismanis, crypto entrepreneurs since 2016, L1 enables financial advisors, family offices, and asset managers to work with self-custodied clients, combining professional oversight with seamless, trustless infrastructure.

About Nexus Mutual

Nexus Mutual (https://nexusmutual.io/) is the largest onchain underwriter, having provided over $5.5 billion in cover for a range of crypto risks since 2019. Its protocol based mutual model safeguards digital assets against hacks, smart contract errors, governance exploits and more.

Jeremiah Smith
OpenCover
media@opencover.com

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