Bright Risk Index - The Most Exciting Opportunity in DeFi Insurance

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

Popular protocols like Anchor often lack cover capacity. Source: app.brightunion.io.

Make Big Bucks by Covering the Community

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

Bright Risk Index exposure. Source: app.brightunion.io
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  • Rewards will be withdrawn and swapped to go into the withdraw pool and will be re-invested in the risk pools (this is an action triggered by the DAO).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: https://app.brightunion.io

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.

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.

Join the Union

Be Bright and #JointheUnion. Receive announcements by joining the community.

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Bright Union

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