Injective has developed a strategic collaboration with Tidal Finance to provide insurance for decentralized derivatives.
Injective will bring Tidal’s insurance coverage to assets on the Injective Chain. Moving forward, this will bring in a new level of security and confidence to the derivatives trading platform as the Injective insurance marketplace continues to grow.
In addition, the community will also aim to create unique decentralized derivative products that utilize the native Tidal Finance token. This can include the creation of new index products such as a DeFi insurance index.
Decentralized Derivatives Insurance
The goal of the Injective community has always been to provide traders unparalleled access to new decentralized derivatives markets without any restriction. The Injective Chain was created to support highly secured and fully decentralized trading of unlimited assets.
In order to provide traders and users of the protocol with the utmost security, it is also important to ensure their assets against any potential issue. A number of decentralized insurance protocols were analyzed in order to expand the Injective insurance marketplace.
Tidal Finance will be one of the first insurance protocols within the Injective insurance marketplace. Through this integration with Tidal, Injective Chain will be able to hedge risk faced by users at the protocol level.
Tidal is an insurance market built upon Polkadot that allows users to create custom insurance pools for assets. This enables users to hedge against any issues faced by DeFi protocols.
Injective has already begun an integration with Polkadot a few months ago so this collaboration with Tidal will aid in unlocking new frontiers within the burgeoning Polkadot ecosystem.
In recent months, Injective has launched a diverse array of unique markets on the exchange such as Tesla stocks, Euro forex trading, and even GameStop stock trading. Integrating with Tidal’s insurance coverage vastly helps to increase opportunities for ensuring a diverse array of derivatives on Injective.
“I am excited to work with Injective to offer mutual cover pools to increase their users’ confidence when transacting on the platform,” said Tidal CEO Chad Liu. “Both platforms will increase user adoption globally through this collaboration”.
In addition, Injective will introduce Tidal’s insurance offering to increase the level of protection for traders on the platform moving forward. This technology will protect against hacks, malicious actors, and other unforeseen events. Traders’ assets will be fully secured in any circumstance. By enabling the mutual cover pool to hedge against unexpected issues, Injective users will be able to trade in any market and any asset without concerns.
Once live, Tidal Finance will provide comprehensive asset coverage through its mutual cover pools. Injective’s native token INJ will be added onto Tidal Risk Pools, enabling LPs to earn more yields by providing mutual cover.
Moving forward, Injective also aims to create unique decentralized derivative products that utilize the native Tidal Finance token. This can include the creation of new index products such as a DeFi insurance index.
Injective looks forward to further expanding the Injective insurance marketplace. The community will be introducing a number of new protocols and are exploring the creation of an internal Injective insurance pool in the near future.
About Tidal Finance
Tidal Finance makes DeFi safer by providing insurance coverage for assets across chains in custom balanced liquidity pools. TIDAL is a Balancer-like insurance market built upon Polkadot that allows users to create custom insurance pools for one or more assets.
With Tidal, users can choose risk pools depending on their risk appetite, and filter it through a combination of protocols/assets and their coverage terms (premium, cover period, etc). Liquidity Providers, on the other hand, can invest in pools that suit their risk/reward ratio.
Injective is the first cross-chain protocol built for decentralized finance applications. On the Injective exchange, anyone can access, create, and trade unlimited DeFi markets such as futures and perpetuals. Developers can also build cross-chain Ethereum-compatible projects that are lightning fast and achieve instant transaction finality. Injective is backed by a prominent group of stakeholders including Binance, Pantera Capital and Mark Cuban.