Sun Raghupathi, CEO of Veda, says DeFi insurance programs are attracting interest from retail and institutional participants, but their real effectiveness remains unknown until a major claim is processed and paid out. DeFi insurers work with very little historical data, unlike traditional insurers who rely on decades of claims to assess risk. Founded in early 2024, the company has grown rapidly with over 600 million dollars in deposits through its Kraken partnership, serving more than 80,000 users, and a total of over 16 billion dollars in deposits processed across all partners. In June 2025, Veda raised 18 million dollars in a funding round led by CoinFund. The gap between promised protection and actual protection remains one of DeFi’s most underappreciated risks.
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