Insurance Farming? $SAFE Enters the Chat

Insurance Farming? $SAFE Enters the Chat

By Da_Sound | greenbull | 16 Sep 2020

The entire world of DeFi moves at a lightspeed pace. The sector gets more and more complicated each week, and if you drop our of the news for a day or two, you will have a tough time catching up with the latest happenings.


As DeFi continues to explode, a newborn trend is starting to heat up, which are known as NFTs - Non-Fungible Tokens. These are unique tokens - one of one if you like - and can be used for various features.

For example, NFTs are what drive collectible items in games such as the CryptoKitties wave that we saw in 2017. In addition to this, NFTs are also used as tokens to represent digital art on the blockchain that is unique and is owned by that specific NFT holder. 

Well, in 2020, with the growth of DeFi, NFTs are starting to move into a different realm as they are used to hand out insurance policies.

Insurance in cryptocurrency? Yes, precisely that. 

These insurance policies allow people like yield farmers to protect their assets on platforms such as Aave or Curve in case they lose their funds. One of these events could be a bug in a smart contract that allows hackers to exploit it or drain funds. 

For example, let’s say you are a relatively small scale farmer with just 10ETH in Aave. 10 ETH to some people might not be much, but to you - it is practically everything you have. Well, with these new insurance policies, you can protect your farmland by taking one of these insurance policies out in case somebody finds a bug in the Aave smart contract and drains your funds.

You can insure your farmlands via


All you have to do is select the platform on which you are farming and the particular asset you would like to insure (for now it's either ETH or DAI). After you pay the quoted fee, you will receive either a yNFT(EHT) token or a yNFT(DAI) token - depending on the asset you selected.


Do you remember back in the good old days of DeFi (not even three months ago) when projects such as Synthetix or Ampleforth made headlines with their liquidity mining incentives?

For example, Ampleforth was pretty lackluster for the majority of the year until it announced its Geyser Incentive Program, which saw its popularity explode.

Well, today, it seems that more incentives are appearing to get us into Insurance Mining. For example, (not a product of YFI) is designed to incentivize users to stake yNFT (the insurance tokens) and receive $SAFE through the Insurance Mining incentive.

Announcement of $SAFE:


  • $7.8 billion locked into DeFi with just $66 million of that insured - around 0.85%.
  • The launch of introduces a new phase of Insurance MIning
  • This is to incentivize farmers to buy cover on staked assets and then stake the yNTFs on to earn $SAFE
  • The first two are two pools - yNFT(ETH) and another for yNFT(DAI)
  • The reward rate is calculated by the “Adjusted Cover Value.”
  • An additional two pools were also added;
    •  $WNXM - to reward supporters of Nexus Mutual which pretty much underwrites these insurance contracts
    • and $DAI-$SAFE LP (98/2 Balancer Pools) - an incentive for $SAFE liquidity providers
  • $SAFE will be a governance token with ‘no (initial) value.’

Andre Cronje, the founder of Yearn.Finance and one of the brightest defi heads has shown quite an interest in $SAFE;

Cronje decided to provide a grant of $25,000 to Chef Insurance to keep up his work on the project. 

The origins of Insurance Mining

  • The initial seed of Insurance Mining started with Twitter User @ChefInsurace (Chef Insurance) with the following tweet on September 2nd,2020;

  • On September 7th, Chef Insurance then tweeted that he was currently writing an insurance yield-farming smart contract;

  • In the tweet, Chef Insurance included @AndreCronjeTech - and it caught his eye on September 8th;

  • With Cronje’s praise, Chef Insurance managed to get the testnet of his contract up on the same day.
  • The smart contract was finalized by September 9th and was even reviewed by Andre Cronje himself.
  • Chef Insurance posted the $SAFE announcement on September 11th - the day before the pools opened for Staking.
  • The pools went live on September 12th - giving birth to Insurance Mining;

  • Chef burnt the admin keys on September 13th - keeping with the true spirit of DeFi.
  • There was a total of $2.75 million entering the Binance Pool in under 4 minutes. This grew to around $90 million just 2-days later.
  • The $WNXM pool has now over $100 million locked

How to Insurance Mine & Get $SAFE? 

  • As mentioned, there are a total of 4 pools in which you can Insurance Mine and earn $SAFE - giving four possible methods.


  • Staking in one of these four pools will let you earn $SAFE rewards.
  • The UI makes it relatively straight forward to do this. However, you will first need to own the underlying insurance token you are trying to stake. 
  • For example, to Insurance Mine on yNFT(ETH) pool, you will need to have taken out cover from for ETH and have the yNFT(ETH) in your wallet.
  • Next, simply click “Open” under the yNFT(ETH) section to see the following screen;


  • Simply click “Stake Tokens” (Red Box) and enter the total amount you would like to stake with (usually 100% of your holdings).
  • The process is the same when trying to Insurance mine on the yNFT(DAI). First, take the insurance contract out to get the NFT on the respective platforms and then stake them in the pool.
  • The process for insurance mining on SAFE-DAI Bal LP is slightly different. First, you will need to head over to the “add liquidity” section on the Balancer Exchange and locate the SAFE-DAI liquidity pool (LINKED HERE - for simplicity).  
  • Next, simply click “Add Liquidity” and deposit the number of tokens you would like;


  • After you have deposited your tokens, you will receive the $SAFE-$DAI LP Token required to stake on YieldFarming.Insure. From here, the process is then the same as the others, click “Open” then deposit these LP tokens into the contract to start Insurance Mining and receiving $SAFE.
  • As for $WNXM - it's simply a matter of buying it on a DEX or Binance, transferring the token into your Metamask wallet and put it into staking. 

Details of the $SAFE token:

Where to get: Balancer and Uniswap 
Max supply: 80,000
Contract address: 0x1aa61c196e76805fcbe394ea00e4ffced24fc469
Initial Price: $0 (fair launch method, following $YFI practices) 
Current price: Between $500 and $2,000.

Top People to Follow Regarding $SAFE 

Blue Kirby.eth 
Andre Cronje 
Chef Insurance 
Santiago R Santos

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