Bright Risk Index - The Most Exciting Opportunity in DeFi Insurance

Replace the insurer while earning 15%-25% APY on a stable coin investment

Bright Union
5 min readJan 20, 2022


Bright Union has been working hard behind the scenes to bring forward the most innovative investment opportunity the DeFi insurance space has seen. We are thrilled to release the Bright Risk Index (BRI) on Wednesday the 9th of February, which finally makes coverage providing a highly attractive investment opportunity for anyone.

Coverage is getting increasingly popular as certain products are often sold out. The BRI serves as a much needed solution to frequent lack of coverage supply. Now anyone can replace the insurer by joining this carefully curated risk pool. Providing coverage has never been so simple, you can minimize your risk exposure while earning high APY’s for covering the community.

Popular protocols like Anchor often lack cover capacity. Source:

Moreover, the opportunity of providing coverage facilitates the crypto community with a sound business model to invest in. The BRI completes our DeFi coverage platform assisting both coverage buyers and coverage liquidity providers with the best experience.

Make Big Bucks by Covering the Community

Curious why this new investment opportunity is so great? Let’s dive in..

The Bright Risk Index allows for the easiest, safest, and most diversified way to act as an “insurer” in the DeFi cover industry while earning attractive returns. Investing directly in the BRI token enables crypto users to be a diversified “insurer”.

Essentially, the liquid tokenized position (BRI) represents a curated basket of diversified staking positions underwriting risks in the DeFi insurance markets. Investing in singular coverage has not been uncommon, but investing in individual insurance pools is risky. The value at risk can be as high as 100% on a single claim. The Bright Risk Index drastically reduces risk by creating a diversified portfolio, spreading the risk across more than ten pools, reducing the value at risk to only 12%. Thus, offering a novel and sound investment opportunity to profit by covering the community.

Bright Risk Index exposure. Source:

Compared to diversifying yourself, the index does not only save a ridiculous amount of gas fees; the BRI token is itself tradable. Instead of dealing with lock-ups and cool down periods, investors have the flexibility to freely trade the tokens on the market whenever the liquidity is needed, without providing KYC. Furthermore, the index’s return is automatically reinvested so that the value of growth accumulates in the price of the BRI token. This is why becoming an insurer is finally worthwhile.

Bright Risk Index explained.

This is how the Bright Risk index works:

  • Deposit in the Bright Risk Index using DAI stablecoin starting from 1500 DAI.
  • During staking, DAI will be swapped to stable coin positions (USDC, DAI, NXM, ….) to be staked in the underlying risk pools (Aave, Mirror Finance, Convex Finance, …)
  • With the investment of DAI, BRI is minted and send to the investors.
  • Over time the rewards will start accumulating.
  • Rewards will be withdrawn and swapped to go into the withdraw pool and will be re-invested in the risk pools (this is an action triggered by the DAO).
  • The strategy will be optimized and rebalanced by Bright Union DAO
  • To withdraw, the user can withdraw from the DAI investment pool. The BRI token will be burned and the DAI will be sent to the investor. (This ensures the ratio BRI to Assets stays exactly equal)

The benefits of providing coverage and replacing the ‘insurer’

Investing in the Bright Risk Index enhances convenience and expected returns, making providing coverage with stablecoins a great alternative to popular savings protocols like Anchor at the least and perhaps even more attractive. Benefits of acquiring BRI tokens include:

  • Higher yield
  • Diversification across risk platforms and protocols — A guiding principle is that the value at risk is below 12% for any claim. The assets will be spread across +30 risk pools of multiple insurance platforms in order to achieve this.
  • Automatic reinvesting and compounding rewards maximize the return for BRI holders.
  • Curated and optimized strategy by the Bright team Bright Union will assess the quality of the insured protocol’s (code quality, extent of decentralization, and past claims) and update the strategy accordingly.
  • Return — Often, the return that can be earned is driven by those risk pools that are sold most. Capital will be allocated to pools where capacity is wanted.
  • Stablecoin preference — Whenever possible, the investment in risk pools will be made in stablecoins not to expose our investors to unnecessary FX risk.
Bright Risk Index Interface. Source:

Coverage Supply To The Rescue

DeFi coverage has become a popular safety net among DeFi users. Interestingly, Coinbase regards DeFi insurance as one of the key crypto trends of 2022. However, there is a drawback. While covering your crypto takes the scene, the possibility of becoming an cover liquidity provider has not received deserved attention from both users and developers. So far, limited coverage supply has restricted surging demand as covers are frequently sold out.

Finally, the BRI comes to the rescue. Becoming part of the solution by helping to secure the DeFi industry with coverage has never been this attractive or straightforward for anyone. Join the Bright Union coverage providers in order to match the surging demand for DeFi covers.

About Bright Union

Bright Union is the world-leading multi-chain decentralized finance cover marketplace. Our mission is to safeguard your digital assets from hacks, smart contract failures, and rug pulls by empowering the crypto community to cover one another in a decentralized and permissionless manner.

Bright Union provides the most comprehensive range of crypto insurance on the market at competitive prices. Furthermore, Bright Union will soon release its unique suite of cutting-edge risk solutions, providing investors with outstanding investment and coverage opportunities. Be bright and take advantage of DeFi’s exponential growth.

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Bright Union

DeFi Insurance marketplace that allows DeFi users to to buy and provide coverage against hacks and protocol failures.