Yanush Ali | July 10 2021
Yanush Ali | July 10 2021
Orion Coverage Pool live on Bridge Mutual
Orion users can purchase decentralized and bespoke risk coverage on Bridge Mutual. Bridge Mutual allows any person to create “insurance” pools for any smart contract, exchange, stablecoin, or service at any time. Now, users can purchase a coverage policy from the Orion Coverage Pool to insure themselves against hacks, rugpulls, stablecoin de-pegging, or exploits that result in a permanent loss of funds.
Bridge Mutual is a permissionless, decentralized, and DAO-managed discretionary risk coverage platform that provides coverage for stablecoins, centralized exchanges, smart contracts and other services. The platform allows users to purchase coverage for their funds, provide coverage in exchange for profits and yield, vote on policy claims and their payouts, and receive compensation for assessing claims fairly. Bridge Mutual allows any person to create “insurance” pools for any smart contract, exchange, or service at any time. Other users can then purchase a coverage policy to “insure” themselves against hacks, rugpulls, or exploits that result in a permanent loss of funds. Stablecoins are also coverable, and coverage for stablecoins protect against any loss of value caused by an event that de-pegs the stablecoin from $1.
User profiles are based around two categories: policyholders and coverage providers. The nature of the two sided policy book ensures an open-source ecosystem without any permissions needed from the client. Validity of the claims stems from a system of voting via users through to policyholders. This also decides the reward amount to be given.
Alongside Bridge Mutual’s official launch yesterday, Bridge Mutual is launching a Coverage Mining Event with almost 6 million BMI tokens to be distributed among participants as rewards. Orion is pleased to be one of the select coverage pools available during this event - the Orion team has provided initial liquidity to the Orion Coverage Pool, enabling our community to purchase coverage immediately.
Any user is able to provide coverage liquidity to the Orion Coverage Pool in the form of USD stablecoins. In exchange for their liquidity, coverage providers will receive yield (80% of all the premiums paid for coverage + a substantial part of the Coverage Mining Rewards + NFTs if they happen to be among the largest contributors). The higher the utilization ratio of the project coverage pool, the higher the APY for the coverage liquidity providers.
When available, the Bridge Mutual widget will be integrated into Orion Terminal, allowing users to purchase coverage directly from the platform.
Project Coverage Pools are the source of coverage for any given crypto project on the Bridge Mutual Platform. The bigger the Pool, the more coverage there is available to the users. The more coverage available, the higher the investors’ confidence and risk tolerance regarding the project being covered — users will naturally lock bigger portions of their assets into projects that they can get coverage for. The more they lock in various projects, the more coverage they’ll need. A positive spiral of risk — hedging. Wider availability of coverage should become a natural element of yield farming strategies and longer staking positions.
Learn more about the Coverage Mining Event here.
Provide coverage liquidity to Orion Coverage Pool here.
Purchase decentralized coverage for Orion here.