Decentralized finance (DeFi) insurance products have the potential to form a scalable market, driven by the growing adoption of blockchain and smart contracts. These products offer transparent, trustless coverage for risks like smart contract failures, hacks, or stablecoin depegging, addressing real needs in the DeFi ecosystem. Platforms like Nexus Mutual and InsurAce demonstrate early traction, with millions in coverage already underwritten. Scalability hinges on user trust, regulatory clarity, and seamless integration with DeFi protocols. As DeFi’s total value locked exceeds $100 billion, demand for risk mitigation grows, creating a fertile ground for insurance markets. However, challenges like high premiums, limited capital pools, and complex user interfaces must be addressed to achieve mass adoption. With technological advancements and broader awareness, DeFi insurance could mirror traditional insurance markets, becoming a cornerstone of decentralized economies.