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- Etherisc, a Chainlink-powered startup has launched a unique USDC depeg protection cover.
- The offering shows how new innovations are now being bootstrapped by Chainlink.
USDC holders may not be susceptible to further losses owing to the de-pegging of the United States dollar-backed stablecoin.
Open-source, decentralized insurance protocol, and ecosystem Etherisc has launched a USDC depeg protection cover which would serve as insurance for losses incurred. While this is the first of its kind, it only applies to when the stablecoin depegs between 5 percent-20 percent of its original $1 value for more than 24 hours.
.@etherisc has launched a parametric insurance solution for USDC depeg protection. It references a USDC/USD #Chainlink Price Feed and issues automated payouts if certain conditions are met.
Explore how Chainlink helps unlock novel insurance solutions ⬇️https://t.co/2SlwMctuEI pic.twitter.com/E8W8ZVHLW4
— Chainlink (@chainlink) April 27, 2023
Chainlink confirmed the launch on its Twitter post,;
@etherisc has launched a parametric insurance solution for USDC depeg protection. It references a USDC/USD #Chainlink Price Feed and issues automated payouts if certain conditions are met.
Customers will receive automatic pre-specified payouts in their non-custodial wallets from the peer-to-peer insurance protocol once USDC depegs and it lasts for longer than 24 hours. It is worth noting that the payouts are significantly faster due to the removal of voluble claims and the long assessment process by the automated blockchain-supported policy. Although, each payout has to be verified via a time-tested Chainlink Data Feed and users have up to 1 week to claim their USDC payout.
Christoph Mussenbrock, Co-Founder at Etherisc referred to stablecoins as a “predictable haven” which offers stability amidst the volatility passing through the cryptocurrency industry presently. He hinted at the collapse of Signature Bank, Silvergate Bank, and Silicon Valley Bank which failed due to liquidity pressures and regulatory concerns of the U.S. authorities.
“The purpose behind stablecoins is to provide a predictable haven within the volatile world of cryptocurrency. However, as the crypto market impact resulting from the recent failures of Silicon Valley Bank, Signature Bank, and Silvergate Bank showed, this stability isn’t always guaranteed. We saw a clear gap in the market for stablecoin protection and the launch of depeg cover on Etherisc brings immediate peace of mind for customers and their USDC deposits,” Mussenbrock said.
Etherisc plans expansion of the protection cover
For Etherisc, the launch of the USDC depeg protection cover indicates an important milestone in the roadmap of the company.
While it is starting with USDC, P2P has announced that it is open to even USDT holders. Markedly, Circle, the issuer of USDC reported that it had a significant amount of USDC reserve on SVB immediately after the collapse of the bank. Out of the $40 billion which it put in SVB, $3.3 billion was yet to be retrieved.
In conclusion, Etherisc Co-founder reiterated “Truly safe avenues within crypto are essential to furthering widespread adoption. Peer-to-peer depeg protection is an innovative way to protect investors’ stablecoin deposits and appeals to those who, above all else, are seeking peace of mind regarding their crypto assets. In addition to extending this product, we will soon enable investors to deposit capital to fund the depeg protection and receive rewards – all powered by staking Etherisc’s DIP token.”
