The Insurance fund is not insurance but is the name of the smart contract where stETH tokens are set aside, which could cover some of the estimated slashing risks. Read more about risk scenarios here. In case of a widespread slashing incident, the decision to recover losses from this fund is decided based on the vote of the Lido DAO.
What is the Insurance fund used for?
A cover fund may be used for various reasons.
Updated over 12 months ago