Bridge Mutual Version 2 Launches on 6th of December and Introduces New Features to the World of Decentralized Insurance
Summary:
- Bridge Mutual is a decentralized coverage platform that allows users to buy or sell coverage for crypto assets and protocols. Protect your portfolio from hacks, exploits and rug pulls, or provide coverage liquidity to gain yield as an underwriter.
- Bridge Mutual Version 2 is set to launch on the 6th of December, 2021 at 10:00 EST
- View the Q4 2021 BMI roadmap and the list of upcoming V2 features here.
- Find more general information about Bridge Mutual V1 here.
Bridge Community,
Bridge Mutual is eager to announce that Bridge Mutual Version 2: The Great Reinforcement, a massive platform upgrade that introduces a number of new functionalities, will be launched on the 6th of December, 2021 at 10:00 EST.
What does Great Reinforcement stand for?
“The Great Reinforcement” is the second version of the Bridge Mutual protocol and the second chapter of Bridge Mutual’s quest to defend the world from the evil forces that wish to steal from us all.
The knightly order of Bridge Mutual stands in solidarity against threats unknown — sharing its resources and knowledge internally as it progresses down the path to prosperity — and was founded to allow anyone, anywhere to sell or purchase protection to defend against threats within the crypto world.
With “The Great Reinforcement” the order’s arsenal is being expanded and greatly improved. Leveraged portfolios will drastically increase the platform’s capacity for providing coverage, shield mining will reward coverage providers in the tokens of other protocols, the affiliate widget will allow other protocols the ability to buy and sell Bridge Mutual coverage directly from their own apps, the Capital pool will start generating revenue for the protocol, and the mobile version will increase the number of non-desktop users.
With these reinforcements, the order of Bridge Mutual will be stronger than ever before, ready to defend against the hackers, scammers, and rug-pullers that would threaten our great kingdom — read on to learn more.
Why insurance?
With DApps and protocols pushing the DeFi industry forward, The TVL (Total Value Locked) in DeFi has reached over 195 Billion, with the number of DeFi users surpassing 3M by July 2021.
Source: Dune Analytics
Current DeFi protocols are already utilizing financial mechanisms such as collateralized loans, exchange fees, price options, and numerous derivatives. However, as we precariously observe and study the expanding industry, we recognize a relative lack of a variety of insurance and risk hedging products, especially fully decentralized ones. According to Ciphertrace, more than 60% of attacks in the crypto space were DeFi- related, and as per AtlasVPN data, DeFi attacks have accumulated to over 474M in the first half of 2021. Both of these numbers will continue to grow as the overall increase of both TVL and the number of users also increases “the prize” and the opportunity for hackers and scammers. DeFi is only as strong as the code that governs it. Because of this unfortunate and inevitable trend, there is a strong case for a decentralized and accessible insurance protocol that optimizes itself in accordance with the community requirements (DAO contributions). At the same time, if the industry is to mature, users should be able to diversify their yield generation strategies with high APY insurance-like products. Both of those objectives (and more) can be achieved by a protocol that allows the market to both underwrite insurance products and purchase a policy for crypto assets.
Enter Bridge Mutual.
Overview of Bridge Mutual V1
Bridge Mutual, a discretionary and decentralized risk coverage platform, was built to provide DeFi users with accessible portfolio protection against security threats in the crypto space, as well as allow them to generate yield via underwriting policies. The platform requires no KYC and has a fully decentralized and transparent claims assessment process, thus introducing a new paradigm of democratic crypto insurance.
Currently, the platform offers a universal smart contract coverage, which protects the policyholder from any permanent loss of funds caused by a hack, exploit, or rug pull. More types of coverage will be available soon.
Bridge Mutual V1 platform, an MVP designed to test the product-market fit, went live on the 9th of July, 2021, soon after receiving a strategic investment from Tether, and kickstarted with a Coverage Mining Event program. In a couple of weeks, the platform achieved $30M+ USD TVL, which the team considers a success given a relatively narrow scope of features initially released. The platform offers coverage for the biggest projects in DeFi, such as SushiSwap, Compound, Aave, Bancor, BarnBridge, Cream, and many more. Further validation of the product came after the first BMI claim was paid out, proving the legitimacy and full operability of the application. Notable events that came afterward included collaboration and transition of liquidity to SushiSwap and initiating the development of Bridge Mutual on Solana.
Introducing Bridge Mutual V2: The Great Reinforcement
Bridge Mutual V2 completely transforms the platform by introducing completely new features. First and foremost, Bridge Mutual will start to generate revenue by investing idle liquidity in low-risk yield generators DeFi projects. This will further support the Vault and allow the future DAO to interact with the world of DeFi, optimize the platform itself, and buy back BMIs from the market. V2 also introduces leveraged portfolios — high reward pools with a higher risk profile, allowing users to expose themselves to many pools at the same time. At the same time, Bridge Mutual will also participate as an “institutional coverage provider”, decreasing the costs of policies on all pools. Growth of the platform will be amplified by the introduction of the widget for affiliates, a mobile compatible version, as well as UI improvements.
Bridge Mutual V2 is a much more sophisticated tool that merges advanced insurance—like products with decentralization, blockchain, and privacy — first approach.
With each and every update, the platform will address more and more market needs (like in example enterprise products), eventually becoming a permission-less go-to place for all decentralized risk products.
Bridge Mutual Version 2 launches on the 6th of December, 2021 at 10:00 EST
Bridge Mutual V2 — list of features:
Leveraged Portfolio(s)
A specially dedicated pool where users can deposit their funds for leveraging and get exposed to a high-reward / high-risk yield farming scenario. Leverage portfolio acts as a leveraged coverage provider and offers a much higher APY than regular coverage provision. Users participating in leveraged portfolios get rewards in stablecoins, BMI tokens, and Shield mining tokens. Due to the high-reward nature, leveraged portfolios are naturally fit for packaged investment products.
The value proposition for users:
- Exposure to riskier high-reward pools with attractive APYs.
- Opportunity to utilize new yield farming strategies for even higher APYs.
Reinsurance Pool
Bridge Mutual’s Reinsurance Pool (RP) incorporates protocol-owned funds. The interest is earned from 3 factors: DeFi Yield Generator, Protocol Fee, and Reward Pool. The reinsurance pool acts as an internal coverage provider, which may significantly de-risk the protocol at no additional expense for regular Coverage Providers. With Bridge Mutual’s Reinsurance Pool, The Protocol Fee will be 20 percent, a portion of the Premium paid by Policyholders. As for the Reward Pool, a part of the 80% premium will be allocated to reward Coverage providers.
The value proposition for users:
- Increased supply of much cheaper coverage on selected pools.
- Improved operations and increased capital efficiency directly translate to overall Bridge Mutual’s value.
Capital Pool
The BMI-platform-owned pool that manages and distributes funds both internally and externally. It is responsible for coverage liquidity withdrawals, policy payouts, as well as for investing in 3rd party DeFi protocols to generate protocol-owned yield. Its “liquidity cushion” is rebalanced daily to always guarantee continuous operations and payouts.
The value proposition for users:
- Externally oriented liquidity pool capable of interacting with the entire world of DeFi (yield farming).
- Idle funds are utilized to generate yield, which can be potentially re-distributed to BMI holders.
Shield Mining
Shield Mining allows users (and projects) to provide X tokens to Project X Coverage Pool in order to increase the pool’s APY and therefore attract more coverage liquidity. Coverage providers will therefore receive rewards in BMI, USDT, and the project X token.
The value proposition for users:
- Developers and community members can promote their project coverage pool by depositing project X tokens and attracting liquidity with an increased APY.
- Exposure to multi-token rewards.
BMI Widget
The BMI widget is an easy-to-implement tool that allows BMI affiliates (individuals and projects) to directly sell coverage policies and raise coverage liquidity through their own channels, all in exchange for a commission. The commission is 5–15% of the premium paid by the policy holders.
The value proposition for users:
- Earning as a BMI affiliate with no up-front investment
- Personal branding benefits
BMI Mobile Version
A mobile version of the Bridge Mutual DApp, fit for browsing and interacting from a mobile screen. Designs and the entire user interface (UI) have been adjusted and prepared for a smaller touch screen.
The value proposition for users:
- Access to all Bridge Mutual functionalities anytime and everywhere from your mobile.
- Monitoring of your coverage portfolio will now be easier and faster.
Migrating to Bridge Mutual V2
The migration to V2 will require no action from the users — all the staking positions will remain as they are. The team will provide support and answer all questions and concerns. Both the support and questions channels are on our Discord — make sure to join it to receive the best assistance and learn about the latest developments.
The Bridge Mutual team is excited to continuously build this application alongside our community as a product that everyone can collectively enhance and manage. We want to thank our dedicated community for supporting us through the journey so far and stay assured that there is more exciting news ahead of us.
The Great Reinforcement has arrived.
About Bridge Mutual
Bridge Mutual is a decentralized, p2p/p2b discretionary risk coverage platform covering stablecoins, centralized exchanges, and smart contracts. Its platform allows users to provide coverage, decide on policy payouts, as well as share profit, and get compensated for adjudicating claims.
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