@raphaelll
Aave’s move into Decentralized Insurance Finance (InsFi) leverages its V3 isolated pools and “premium-bearing token” model for on-chain insurance. Q1 2025 TVL in Aave insurance vaults grew 27 percent to $2.4 billion, driven by NFT collateralization in GameFi and real-world asset insurance pilots (Aave Protocol Reports). Key risks include catastrophic claims and regulatory uncertainty around insurance tokens’ legal status.