Bridge Mutual ($BMI) has created a partnership with DAFI to explore the utilization of synthetic dBMI tokens, which will be pegged to the underlying native token. These synthetics can be used to create rewards which are tied to the level of demand on the market.
The synthetic version of dBMI can be implemented to avoid the risk of over-issuing too many native tokens in reward schemes. It can create stable adoption of the BMI token without the risk of hyperinflation. DeFi suffers from short-term users and hyperinflation caused by the necessity to issue extremely high rewards in order to compete for TVL; Dafi solves this.
Bridge Mutual is addressing security issues in DeFi platforms by providing decentralized mutual covers for assets. Its risk coverage extends to stable coins, smart contracts, and exchanges. We’re glad to be partnering with Bridge Mutual, and happy to hear that they’ll explore the usage of synthetic dtokens within their platform. We can’t wait to see how the synthetic dBMI tokens will potentially be used, whether it is for distribution of staking rewards, or incentivizing network adoption.
— Zain Rana, CEO at DAFI
DAFI’s mission is to introduce a completely new inflation model, so every decentralized economy can incentivize in proportion to their own adoption metrics; this will greatly aid Bridge Mutual in utilizing its tokens wisely, as the max supply is fixed and tokens cannot be minted or burned to manipulate the token economy.
DAFI protocol solves dual issues of hyperinflation and network adoption. Their innovative idea of using synthetics to reward users later, rather than earlier, would be great for platforms like Bridge Mutual. This is why we’re keen on exploring if Bridge Mutual’s platform could use a synthetic version of our native tokens for staking rewards and other use cases.
— Mike Miglio, CEO of Bridge Mutual
About Bridge Mutual
Bridge Mutual is a decentralized, p2p/p2b discretionary risk coverage platform that provides coverage for stablecoins, centralized exchanges, and smart contracts. Its platform allows users to provide coverage, decide on policy payouts, as well as share profit and get compensated for adjudicating claims.
About DAFI protocol
DAFI uses synthetics pegged to different decentralized networks. Every blockchain, application, and cryptocurrency can create a flavor of a dToken to reward their early users, while still enhancing scarcity when demand is low.
DAFI can reward a network even when demand declines, by issuing synthetics that will reward user’s later — instead of earlier. Join us on Telegram for updates.