DeFi Coverage Aggregator Bright Union Launches Mainnet
September 14 2021 - 8:52AM
NEWSBTC
The decentralized finance (DeFi) coverage aggregator Bright Union
has launched its highly anticipated mainnet. In the lead-up to this
launch, Bright Union announced partnerships with three DeFi
coverage protocols including Nexus Mutual, Bridge Mutual, and
InsurAce. Collectively, these protocols have already sold over $500
million worth of covers. These partnerships allow Bright Union to
match DeFi coverage policy buyers and providers with over 130
coverage products, the most extensive supply of crypto coverage in
the current marketplace, accounting for around 90% of the DeFi
coverage market. In addition to furnishing a multi-chain compatible
one-stop-shop for DeFi coverage, Bright Union will develop a
bespoke series of innovative products such as the Bright Risk
Index, portfolio coverage for institutional DeFi users, as well as
DeFi coverage infrastructure allowing other DeFi protocols to sell
directly to their users. Why the DeFi Community Needs Coverage
Blockchains are secure and immutable networks that allow for
transactions to be made and records to be kept in a transparent and
decentralized manner. Most blockchains developed after Bitcoin,
like Ethereum, are Turing complete, which means they can act as a
computer that executes code in the form of a smart contract. Smart
contracts make DeFi services possible, but great care is necessary
when coding these contracts, since bad actors can find creative
ways to exploit a dApp’s code to their advantage. As DeFi services
become more sophisticated, the code for these services becomes more
complex, which means attackers can find more ways to exploit a
smart contract and siphon funds. One exploit perpetrated in August
resulted in over $600 million in tokens moving from the Poly
Network to the exploiter’s wallet when the attacker discovered a
way to trick a cross-chain smart contract into giving them access
to Poly’s liquidity wallets. Luckily, the perpetrator returned the
stolen funds, but this is not how exploits usually play out, and
assets lost to an exploit are often irretrievable. The threat of
falling victim to an exploit can be a constant worry for those who
deposit their assets into smart contracts. Similar to how dollars
and euros deposited into traditional banks are protected by
independent agencies, like the FDIC in the US or FSCS in the UK,
being able to insure one’s position against black swan events and
mitigate the risks of participating in DeFi could mean a huge step
forward for drawing new users and funds into this nascent financial
sector. Could Coverage Become DeFi’s Next Big Breakthrough? In
2016, Ethereum implemented a hard fork in order to reverse an
exploit and return stolen funds (around 15% of all ETH in existence
at the time) that were taken from a short-lived project called The
DAO. This decision to fork Ethereum to recoup lost ETH was so
controversial that it led to a division in the Ethereum community,
and this is why Ethereum Classic exists today. Considering the
growth of dApps and TVL on Ethereum’s network since 2016, it’s
highly unlikely that such a drastic measure as a hard fork will be
taken again to remedy the exploit of a single project’s smart
contract. In lieu of other options, DeFi coverage is taking the
spotlight as the best way forward for users to gain peace of mind,
and the market for it is growing. Assets protected by DeFi coverage
have grown tenfold since the beginning of 2021, from $60 million in
January to around $650 million at the time of writing. However, the
entire DeFi market is currently valued at over $160 billion in
total value locked (TVL), which means that less than one percent of
the DeFi market is insured. Bright Union Shines a Light on the
Future of DeFi Coverage DeFi coverage protocols can be complex
products. Bright Union recommends coverage that matches each user’s
needs by analyzing their wallets and providing options for
appropriate coverage. Investors can then weigh terms and rates from
selected offers and choose the best deal. “DeFi is complicated, and
the concept of Decentralized Insurance is not a simple one either.
We’re making it easy for customers to understand, compare and
choose what fits best. If you participate in DeFi, covering your
position against black swan events is a necessity,” explains Kiril
Ivanov, Co-Founder of Bright Union. In the future, Bright Union’s
roadmap will include services that are open to the entire DeFi
community, with premium services reserved for members of its DAO.
The increased benefits from these services will reflect the amount
a user has staked in the DAO, and these benefits include
buying/selling coverage at a discount and excess of loss collateral
that lowers DAO members’ capital requirements for providing
coverage, similar to a reinsurance scheme in traditional finance.
Bright Union is built on Ethereum and will be compatible with BSC,
Polkadot, Solana, and XDai in the future. The September 14th launch
of the Bright Union mainnet will make smart contract and stablecoin
coverage more accessible to the DeFi community as it continues to
grow across multiple chains with new and possibly vulnerable smart
contracts being written every day. Image by Gerd
Altmann from Pixabay
Ethereum Classic (COIN:ETCUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ethereum Classic (COIN:ETCUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024