Developments in the DeFi sector are astonishing to say the least. Albeit exciting, keeping track of all the progress can become overwhelming. Here, we introduce to you Bright Union, a multi-chain DeFi coverage aggregator, destined to make sense of the growing crypto coverage sector. It aggregates and facilitates, all from the convenience of a single interface.
As you may have felt, the crypto market took a recent hit, leaving many new investors in red. This plunge also caused DeFi activity to slow down as trust in the market declined. However, DeFi’s Total Value Locked (TVL) remains fairly stable. During this time of scrutiny, hype is separated from value. DeFi is here to stay.
Since it’s beginning, DeFi has given opportunities and profits to many. But with great reward comes great risk. Current market events demonstrate the urgency for risk management. Malicious actors, appearing in all innovative industries, take advantage of greed, ignorance and weakness. This makes the rapidly evolving and active DeFi space also a highly attractive target.
In 2020 alone, hackers stole around 120 million dollars in the trending DeFi space. Imagine you were invested in Meerkat Finance, a yield protocol on the Binance smart chain. Only one day after going live in March earlier this year, the promising protocol lost nearly 32$ million in an attack. Speculated to be one of the biggest self-directed rug pulls, early adopters were left empty handed.
An event with such a low probability, but an extremely high impact, feels frustrating and makes many question whether the risks associated with DeFi are worth the hassle. So the question is how do you protect yourself against crypto risks such as hacks, rug pulls, smart contract and on-chain entity failures and the likes? We believe crypto coverages are the logical solution to protecting yourself against such risks.
Crossing the Chasm with DeFi Coverage
After what we’ve just discussed, wouldn’t you say there is an evident need for crypto coverage? Decentralized coverage projects like our partner and first mover, Nexus Mutual, have been steadily attracting more users even while general DeFi activity slowed down in the past month.
Seeing the substantial rise of active Nexus Mutual users, it’s no surprise that this service shows growing demand. During the year 2021, we predict that 5 to 10 new platforms will enter the market, protecting users against risks associated with the DeFi ecosystem. We welcome these entrants with open arms into the wild west of finance, as they help users effectively manage their tail-end risks. Setting the stage for an attractive investment climate, crypto coverage may attract the early majority of retail and institutional investors to the DeFi sector. From the swift rise of multiple parties offering these new and complex products, an opportunity arises for a single platform to aggregate and match demand with supply.
Bright Union — The one-stop shop for crypto coverages
This is where Bright Union becomes a key player in the crypto coverage market. A blockchain-agnostic DeFi coverage aggregator to be set free as a fully fledged DAO. Bright Union aggregates and dissects to help both new projects and DeFi users to find their place in the market.
The platform will run both as an aggregator and an accelerator for DeFi coverage, providing the following three distinct functionalities:
- As a DeFi user you can compare and buy crypto coverages.
- You can provide coverage by staking stablecoins or matured currencies on the platform.
- You can become part of the DAO and stake at Bright Union.
Shopping for crypto covers
First and foremost, the aggregator serves as a much-needed layer of transparency and convenience for crypto users looking for the best crypto risk coverage products to protect their portfolios. This will be a strong added value in the currently fragmented market, with material differences between platforms and products.
The strategic advantage of Bright Union’s algorithms is that they provide a real-time comparison of the available risk coverage products in terms of price, liquidity, coverage ratio claims process, and user friendliness, among other relevant parameters. As such, users transact seamlessly on multiple underlying risk coverage platforms from a single interface.
This will help you as a users because one of your assets might be cheaper to cover by Nexus Mutual and another asset might be cheaper at Bridge Mutual. It would be cumbersome to login to multiple risk platforms at once.
Staking on crypto covers
Another aggregator functionality is interesting for users eager to set their favorite cryptocurrencies to work. The platform enables users to stake on multiple underlying risk coverage platforms from the same single interface. Our partner, Nexus Mutual, allows users to stake their native NXM token on covers. Bridge Mutual will introduce coverage staking with stablecoins, bringing safety to the market. In the future, we plan to be hosting more staking possibilities. Bright Union will provide several staking options with matured cryptocurrencies like Ether, alongside the native BRIDGE token.
Joining the DAO
As a self-governing community we will benefit from the wisdom of the crowd and collective collateral. There are many benefits to becoming a DAO member of Bright Union, by staking BRIGHT tokens. DAO members not only enjoy collateral pools with lower capital requirements. They also have the power to vote on optimizing operations, risk parameters and product management.
But here comes the kicker. Bright Union will offer DAO members an additional layer of premium services that originate from the traditional insurance market. After all, not all aspects of the centralized insurance market are anachronistic. These premium services will belong to Bright Union’s DeFi coverage Accelerator, the central flywheel in the crypto risk markets.
If you are interested, stay tuned for our upcoming articles, where we further explore the Bright Union’s function as an accelerator.
So, What’s Next?
Bright Union will ultimately become the 1Inch for risk coverage products. The central platform for the entire DeFi risk coverage ecosystem. As for risk platforms, Bright Union will serve as a much-needed distributor for the fragmented crypto risk coverage platforms, which requires additional marketing and sales power to drive forward and further professionalize the crypto coverage market.
As of now, the Aggregator has been finalized together with Nexus Mutual, with two more integrations in the pipeline. Bridge Union is ready to launch the platform, as soon as two risk platforms go live.
We hope you are just as eager as we are to see the crypto coverage industry further emerge. Become part of the community and the happening, as we approach the Token Generation Event for the BRIGHT token. Reap the benefits as an early adopter and contribute to the expansion of crypto coverage. It’s time to show the world how insurance is done right. Are you joining the crypto coverage train? Together we can help each other directly in case of dire straits.