Are Venus Protocol loans High Risk?

Risk Analysis
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Hello :slight_smile: I was interested in purchasing the insurance on my Venus Loans. However I got surprised when I sow that the yearly cost is 40%. When I was checking the prices in other projects they looked quite fair to me. Does anybody Know why is Venus insurance that expensive? Is it because it is considerered a risky protocol?

Thanks guys :slight_smile:

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It can be because

  1. it is considered highly risky (it has been hacked last year)
  2. demand for Venus coverage is low so stakers don’t expect much premiums, and therefore don’t stake on Venus, resulting in high cover premium.

Nexus V2 will improve pricing ( point2) so maybe the price for Venus will come down in the next few months!

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