FairSide, a blockchain startup based in Detroit, has raised $4.2 million to expand its cost-sharing DAO solution and help thousands of crypto holders.
The funding took place via a staking round which allocated the funds to FairSide Network’s capital pool. The round counted with participation from Alameda Research, Dominance Ventures, Jump Capital, Figment Capital, and Daedalus Angel Syndicate. Brian TK Lee, VC at Alameda Research, referred to the firm’s reasoning to support the round by stating:
“Insurance in the space is underdeveloped and viable solutions are needed. FairSide’s single membership, cross-chain, multi-cover approach is like nothing we have seen. It has the makings of something big and we are excited to be a part of it.“
Fairside’s team added:
“Existing crypto-insurance offerings’ over-reliance on scarce liquidity pools and the sky-high premiums they carry, sometimes as high as 40% or more, make them too costly and insecure to provide sufficient protection in the event of a smart contract failure, exchange hack, exploit, or any other unforeseen external event.”
FairSide was developed with the mission to provide its members with blanket coverage via a membership. The network offers coverage for multiple blockchains, projects, and types of loss, which extends its use to all crypto investors instead of limiting itself to those in DeFi. James Parillo, VC at Figment Capital, said in this regard:
“The vast majority of today’s crypto investors interact with multiple DeFi protocols, oftentimes without any form of insurance coverage. Existing insurance protocols are broken and Fairside aims to solve many of the biggest problems with existing offerings. “
With cryptocurrency investing becoming an increasingly popular strategy for millions of people around the world, reducing the risks associated with its volatility is essential. FairSide’s solution aims to make it easier than ever for crypto investors to mitigate these risks, all while providing investors with a chance to profit themselves from helping others doing so.