Bridge Mutual, the decentralized, peer-to-peer discretionary coverage platform for digital assets, today announced the launch of its BMI token on Polkastarter, the Polkadot DEX for cross-chain token pools and auctions. The BMI token will be available on Polkastarter via an Initial DEX Offering (IDO) starting January 30, 2021.
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Last year alone, an estimated $200 million USD in digital assets were lost in attacks on major services including KuCoin, Harvest Finance, and Origin Protocol. Bridge Mutual mitigates the risk of loss of funds resulting from unaudited smart contracts, exchange hacks, and other digital asset vulnerabilities with a marketplace for investors to provide and purchase coverage. Built on Polkadot to avoid high gas fees existent on other networks, Bridge Mutual provides coverage for stablecoins, centralized exchanges, smart contracts and decentralized exchanges, with more products under development.
“Even the most sophisticated digital asset investors are at risk of losing their funds through various malicious and negligent activities in the blockchain ecosystem. With Bridge Mutual, we believe it doesn’t have to be this way. Using Bridge, people can control the risk exposure of their digital asset investments, just as they do with real-world assets,” said Michael Miglio, CEO of Bridge Mutual. “The Bridge Mutual platform allows people to offer and purchase coverage in a decentralized p2p way. We’re excited kickstart the launch of the BMI ecosystem with a launch on Polkastarter and creating a better way of protecting digital assets for users all over the globe.”
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With Bridge Mutual, users can acquire or provide cover for smart contracts, stablecoins, or exchanges. As an example, coverage providers that want to offer coverage to Aave users will deposit stablecoins in the Aave pool, thus allowing them to earn yields passively (in the form of stablecoins and Bridge Mutual tokens (BMI)) and earn profit sharing when others buy Aave coverage. Users can quickly purchase Aave coverage using the Bridge Mutual app, and easily file a claim in the event that Aave were to be hacked or exploited.
When users lock stablecoins in Bridge Mutual’s coverage pools, those funds are reinvested into popular (and safe) yield generating platforms that return yields to coverage providers. When a claim is approved, stablecoins from the coverage pool goes to the claimant.
Platform users can provide coverage for pools with varying degrees of risk, according to their risk appetite. In return, providers receive risk to ratio yields derived from the reinvestment of funds in the coverage pools on decentralized lending platforms, profit sharing, and voting rewards which are given to those that vote on submitted claims.
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