Don-Key Finance pilots with first covered yield farming strategy

Don-key finance and Bright Union are thrilled to announce the launch of their pilot strategy with embedded insurance! Don-key Finance, a social platform for Yield farming with a of TVL of more than $20m has listened to the community as their demand for insurance protection grew. With embedded coverage, users can opt-in to getting covered against protocol hacks or smart contract failures in a one-click in-app process.

Safer yield farming with embedded insurance

From Wednesday 26th January, yield farming just got more interesting. After following Don-key’s existing steps to invest in a strategy, users will have the option to buy coverage without needing to visit the Bright Union app. The pilot strategy enables us to learn how users respond and what their needs are. Marked by the Bright Union logo, the strategy, WMATIC — the new king, will be the first with many more to follow.

For this specific strategy, embedded coverage will be optional for purchase. The user’s funds will be protected if the protocol gets hacked or suffers a smart contract failure. In 2021 billions of dollars were taken from protocols, big and small, audited and unaudited. Both Donkey and Bright Union strongly believe that farming strategies with embedded insurance will be a strong driver for future growth as a maturing DeFi industry demands adequate risk mitigation. By participating in the WMATIC- the new king strategy, powered by Don-key and Bright Union, users will enjoy stellar yields on their digital assets, while being insured against one of the biggest risks in crypto: hacks, smart contract failures and exploits.

DeFi hacks are increasing exponentially, with over 10.5 billion lost in 2021. Source: Elliptic.

The Don-Matbeast, Don-Keys first covered strategy

The first strategy with embedded insurance, the DON-Matbeast, will be a simple flow of WMATIC through Apeswap and Beefy finance. The APY is a steady 22%. With the cost of coverage in total averaging around 0.24% per month.

Don-Key’s first covered strategy: the Don-Matbeast. Source: Don-key.finance

How to invest and get coverage against hacks

Step 1: Find the strategies market with the BrightUnion coverage label and invest.

Step 2: Purchase coverage according to the protocols involved in the strategy. The user has the choice of how much they want to be covered.

Step 3: See your coverage by hovering over the Bright Union badge

Step 4: If the user increases their investment in the strategy, hover over the badge and click ‘buy more’

As of today coverage will be available for purchase in monthly periods after which point the user can manually purchase an extension through Don-key’s platform. Future plans involve rolling time periods and automatically adjusting coverage dependent on an individual’s investment strategy. Users who’ve purchased coverage for this strategy will be able to view their coverage in both the Don-key and Bright Union app. The cost of coverage will be around 0.24% of capital per month. If the user withdraws their funds, and exits the strategy before the end of the month, the premium paid for the remainder of the month cannot be reclaimed.

In the current WMATIC strategy offered by Don-key, more than one protocol is involved. Due to the interconnectivity and flow of these strategies, the total capital covered is 200% of the investment. Why? Because the investment must be 100% covered against hacks on Beefy protocol and 100% covered against hacks on Apeswap protocol.

About Don-Key Finance

Don-key.finance started in 2020, at the beginning of the yield farming craze, with a very clear vision of bringing the simplicity of ‘copy trading’ to the complex world of DeFi Yield Farming.

An initiative that came from real necessity, Don-key’s founders are DeFi enthusiasts from Israel, Cyprus, Ukraine and India with a true passion to democratize yield farming and helping crypto users around the world stay up to date with the constant evolution of the yield farming space.

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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