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Decentralized insurance protocol InsurAce has raised $1 million in a seed funding round.

The firm said in an announcement Tuesday that the round was led by DeFiance Capital, a crypto fund that’s focused on the decentralized finance space.

Other investors that participated in the round include ParaFi Capital, Huobi DeFiLabs, Hashed, Signum Capital and Lunex Ventures.

“We aim to build a decentralized insurance platform, providing carefree insurance services, and creating sustainable investment returns for our users,” Oliver Xie, founder and CEO of the protocol said in the release. 

According to Xie, the goal is to offer low-premium insurance and insured investment products in the DeFi space as hacks have been increasingly targeting at smart contracts that caused significant loss of funds. 

The protocol is also launching liquidity mining to boost its capital pool, Xie said. 

“Insurance is a critical component for the growth of any industry. For DeFi to reach mainstream adoption, we need a robust insurance market with multiple providers. As active users of DeFi protocols, we’re keen on supporting InsurAce develop user-centric solutions will allow users to capture the benefits of DeFi while minimizing the risks,” said Santiago Roel Santos, Partner at ParaFi Capital.

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