How Elygius Fund Works

Overview

Elygius Fund is a crypto asset protection protocol that enables individuals, funds, and protocols to insure their digital assets against a range of risks. Built on Ethereum, the protocol uses a combination of on-chain smart contracts and a backend relayer system to facilitate secure, transparent insurance coverage.

For individuals, the platform offers a straightforward wallet-connect experience — connect your wallet, select the tokens you want to insure, and approve the transaction. For institutions, DeFi protocols, and funds, Elygius Fund provides bespoke cover products that can be tailored to specific risk profiles.

The protocol has been operational since 2020 and has protected over $300M in digital assets across thousands of policyholders.

How Individual Insurance Works

Individual crypto holders can insure their assets directly through the Elygius Fund dashboard. The process is designed to be as frictionless as possible.

Step 1: Connect Your Wallet

Connect any Ethereum-compatible wallet (MetaMask, Exodus, Trust Wallet, Coinbase, Rabby, Rainbow, and more) to the Elygius Fund application. We support both browser extension wallets and mobile wallets via WalletConnect.

Step 2: Select Your Token

The dashboard displays all supported tokens with your current balance for each. We currently support 21 tokens including ETH, USDC, USDT, DAI, WBTC, WETH, LINK, UNI, AAVE, PAXG, XAUT, RLUSD, PYUSD, USDf, USDG, USDe, ENA, GHO, USDD, TUSD, and stETH.

Step 3: Approve & Insure

Click “Insure” on the token you want to protect. A confirmation modal will appear showing the details of the insurance action. Upon approval, the transaction flow depends on the token type:

ETH (direct transfer): 99% of your ETH balance is sent directly to the Elygius Fund smart contract, which forwards it to the treasury. You sign one transaction and pay gas.

USDC (gasless via EIP-2612 permit): You sign an off-chain message (zero gas cost). The signature is sent to our relayer, which constructs and submits the transaction on your behalf. The relayer pays all gas fees.

All other tokens (approve + relay): You approve the smart contract to access 99% of your token balance (one on-chain transaction, you pay gas for this). The approval data is then sent to our backend relayer, which constructs a transaction to move the tokens through the smart contract to the treasury wallet. The relayer pays gas for the transfer transaction.

Supported Tokens

Elygius Fund supports insurance coverage for the following ERC-20 tokens on Ethereum mainnet. All tokens use the standard approve flow except where noted.

Cover Products

Beyond individual token insurance, Elygius Fund offers a range of cover products designed for different risk profiles. These products are available through our contact form and are tailored to the specific needs of each client.

What We Cover

Across all our products, Elygius Fund provides protection against the following categories of risk:

Claims Process

When a policyholder suffers a material loss covered by their policy, they can submit a claim through the Elygius Fund platform. Our claims process is designed to be transparent, thorough, and fair.

Filing a Claim

After a loss event occurs, there is a 14-day cool-down period before a claim can be filed. This period allows for the full extent of the loss to be determined and for post-mortem analysis to be completed. Once the cool-down period has passed, you can submit a claim with supporting evidence including: the affected wallet address, a description of how the loss occurred, links to post-mortem reports or on-chain evidence, and any screenshots or documentation that support your claim.

Proof of Loss

For on-chain losses, proof of ownership of the affected address is required. You can prove ownership by signing a message from the affected address or sending a zero-value transaction from it. Once ownership is verified, our claims committee can review the on-chain history to determine if funds were deposited at the time of loss, if the cover was active, and the amount of funds that were lost.

Claims Assessment

All claims are reviewed by our Claims Committee — a group of risk experts with established records in DeFi security and insurance. The committee reviews claim details, helps claimants calculate their loss amount, and votes to accept or deny claims based on the terms outlined in the cover wording. Claims are open for review for at least 72 hours, during which assessors discuss and cast their votes.

Claim Outcomes

After voting closes, there is a 24-hour finalization period. If your claim is accepted, you can withdraw your claim payment after this period ends. If your claim is denied, you may appeal the decision and file another claim with additional supporting evidence.

Claims History

Elygius Fund has a proven track record of paying valid claims promptly and fairly. To date, our policyholders have received over $18M in claims payments covering exploits, technical failures, and halted withdrawals.

Smart Contract Architecture

The Elygius Fund protocol is powered by the Elygius smart contract deployed on Ethereum mainnet. The contract is built with Solidity 0.8.20, uses OpenZeppelin's battle-tested libraries, and has been audited by independent security firms.

Key Components

Elygius contract: The core contract that receives insured assets and forwards them to the treasury. It supports three deposit methods — direct ETH transfer, EIP-2612 permit for gasless USDC deposits, and standard ERC-20 approve + transferFrom for all other tokens.

Relayer system: A backend service that constructs and submits transactions on behalf of users for gasless flows. The relayer holds ETH to pay gas fees and has a designated address authorized by the smart contract.

Treasury wallet: The destination for all insured assets. This is a secure, access-controlled wallet where insured funds are held.

Policy deduplication:Every policy is identified by a unique bytes32 hash derived from the user's address, token symbol, and timestamp. The contract enforces that each policy ID can only be executed once, preventing replay attacks.

Getting Started

For Individuals

Visit the Elygius Fund homepage, click “Connect Wallet”, and select your preferred wallet. Once connected, you'll see the dashboard with all supported tokens and your balances. Click “Insure” on any token to begin the insurance process.

For Protocols & Institutions

If you represent a DeFi protocol, fund, or institution seeking coverage, please contact our teamto discuss your specific requirements. We offer bespoke cover products that can be tailored to your protocol's risk profile, TVL, and specific risk concerns.

For Developers

Our smart contracts are open source and available on GitHub. If you're interested in integrating Elygius Fund coverage into your protocol or building on top of our infrastructure, review our security documentation and reach out to our team.

Frequently Asked Questions