Polkadot-based programmable insurance DeFi protocol Tidal Finance has entered in a strategic partnership with UnoRe, a decentralized reinsurance protocol powered by Polkadot.
According to an announcement by Tidal Finance on Wednesday, May 12, the partnership aims at addressing security concerns in the DeFi space. The partnership will Tidal Finance to develop new and innovative insurance products reinsured by UnoRe for their community.
Tidal Finance is an open marketplace for programmable insurance on Polkadot that makes DeFi safer by providing insurance coverage for assets across chains in custom balanced liquidity pools. Users can create custom insurance pools for one or more assets. Users can choose risk pools depending on their risk appetite and liquidity providers can invest in pools that suit their risk and reward ratio.
UnoRe is the world’s first decentralized risk trading reinsurance platform built on Polkadot that allow the community to “invest and trade in ‘risk’ and receive sizable returns on their investments in one of the safest asset classes in the world.”
According to Tidal Finance, as the insurance is playing an important role to drive DeFi adoption, ensuring the security of crypto insurance protocol with a robust framework is more than necessary. So, Tidal Finance has chosen UnoRe to ensure the safety of DeFi by insuring assets across chains in custom-balanced liquidity pools.
In this strategic partnership, UnoRe will reinsure “Tidal’s insurance protocols to accelerate their capital efficiency and increase the safety of principals covered by their insurance products.” The blog post reads:
“UnoRe will offer an additional layer of protection to Tidal Finance and its users by providing a Stop Loss Reinsurance coverage. In the event of a catastrophic loss for Tidal Finance, UnoRe will cover the claimed amount beyond a predefined limit (Deductible of a Stop Loss Cover). In exchange, UnoRe will charge a premium for each policy offered by Tidal Finance that includes Stop Loss Cover.”
Tidal Finance will be an innovator on the UnoRe for Innovators platform. As an innovator, Tidal Finance would be staking UNO tokens on UnoRe’s platform in proportion to the expected premium in the Reinsurance treaty.
Chad Liu, co-founder of Tidal Finance, commented:
“It’s a pleasure to be working with UnoRe as a reinsurer. This partnership is a true watershed moment for the decentralized insurance space, and we look forward to benefiting the crypto community with greater safety and security as a result of this engagement.”
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