Insurance Wrapped Transactions (IWT)

Insurance Wrapped Transactions (IWTs) are at the core of Web3Shield's mission to bring seamless, real-time insurance to on-chain activity. With IWTs, users interact with their favorite protocols just as they normally would—whether it's staking, bridging, or transacting—while gaining embedded insurance protection in a single, frictionless flow.

In an IWT, the transaction itself remains unchanged in its structure and execution. The key difference lies in the inclusion of an insurance layer: a premium is calculated and sent to Web3Shield at the time of the transaction. This premium activates short-term, transaction-specific coverage that protects the user against eligible risks—such as a bridge hack or protocol failure—during the lifecycle of that transaction.

The coverage begins the moment the transaction is submitted to the blockchain and remains active for its defined risk window. If a covered loss event occurs within that window, the user is eligible to file a claim and receive compensation based on their insured amount.

IWTs represent a new paradigm in on-chain security: decentralized, opt-in insurance that is both atomic and on-the-go, without disrupting the core user experience. Whether it’s restaking, cross-chain bridging, RWA interactions, or simply transacting from a wallet, every action on-chain can now be wrapped with trust and protection.