The Chainwire announcement says the policy is the largest ETH slashing cover in crypto and is designed to protect one of Ethereum’s biggest validator sets against extreme loss scenarios.
ether.fi said it has chosen Nexus Mutual to provide what it described as crypto’s largest-ever ETH slashing cover, protecting its validators against up to 15,000 ETH of slashing penalties. The move is aimed at reducing a key staking risk as ether.fi expands among retail and institutional users and operates one of the largest validator sets on Ethereum. Slashing (penalties for validator rule breaches) is a tail risk for large staking operators because technical or operational failures can lead to forced losses. ether.fi said the protection was sized for extreme scenarios and exceeds all historical ETH slashing losses combined. Founder & CEO Mike Silagadze said the company has invested in audits, operational security, staking architecture and “now the largest insurance program in the industry.” Nexus Mutual Founder Hugh Karp said covering ether.fi users for up to 15,000 ETH in slashing penalties was “a historic step.” The announcement also said ether.fi has more than $6 billion in assets under management across Cash, Stake and Liquid, while Nexus Mutual said it has covered more than $7 billion in smart contract (self-executing blockchain code) hacks, slashing and other digital asset risks since 2019.