Reliable off-chain data is an integral part of the success of any decentralized platform. With this in mind, Bridge Mutual is happy to announce a new partnership with Kylin Network, bringing decentralized and verifiable data from Kylin’s oracles. This new partnership enables accurate, up-to-date pricing on USDT, USDC, DAI, and other stablecoins integral to the functionality of the Bridge Mutual decentralized risk coverage platform.
Eliminating Human Error in Risk Coverage
One of the staples of Bridge’s discretionary risk coverage service is the option to protect against stablecoin instability. On top of covering exchanges and smart contracts from hacks and vulnerabilities, Bridge offers coverage for stablecoin devaluation, an event that can significantly harm a user’s savings. Following this collaboration with Kylin, users can make claims against stablecoin value loss using accurate pricing information supplied by the oracle. For example, if there is an exploitation against USDC, dropping the price down to $0.90 per token, any user who took out coverage prior to the incident would be able to submit their claim and instantly receive the full value dictated in the policy.
By utilizing oracles for price determination, the possibility for human errors or manipulation is mitigated. Unlike smart contract and exchange hacks that have to go through a community voting process to proceed, claims against stablecoin devaluations are automatically fulfilled based on available market price.
A New Form of Protection for Oracles
Besides the possibilities enabled regarding stablecoin coverage, Bridge Mutual is planning to expand its offerings to include ‘Oracle Misinformation Coverage’ for Kylin. By working hand in hand, Bridge Mutual can provide coverage against damages from falsely relayed and inaccurate oracle data. Oracles are meant to be a trusted data source, but there are still rare instances where they can be compromised. If this happens, a new risk coverage product from Bridge can act as a buffer against financial damages caused by this misinformation. This partnership provides tangible value for all stakeholders involved, making the blockchain sector a safer place.
When asked about the partnership, Kylin Network CEO, Dylan Dewdney, commented, “We are extremely pleased to be working together with Bridge Mutual to help drive more robust oracle solutions, and thus better outcomes, for their core product: stablecoin coverage. In addition, we are super excited to be innovating on an entirely new types of coverage as well!”. This alliance is sure to be a fruitful one.
Mike Miglio, CEO of Bridge Mutual, also made a statement on the collaboration. He said, “Offering discretionary coverage for stablecoins requires examining all possibilities in which investors risk losing funds, and oracle misinformation is one of these. I look forward to working closely with Kylin Network to address this while expanding Bridge Mutual’s comprehensive digital asset discretionary coverage offering.”
About Kylin Network
Kylin Network aims to build a cross-chain platform powering the data economy on Polkadot. It will be the data infrastructure for the future DeFi and Web 3.0 powered by Polkadot. Kylin Network aims to provide valid, reliable, secure, cost-effective, and easily-coordinated data sources and data analytics. It is the Kylin team’s bold vision that we have the capacity and potential to build the infrastructural data validation layer of Polkadot and by virtue, potentially the entire cross-chain blockchain universe!
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. Bridge Mutual’s token, $BMI, witnessed an explosive TGE on January 30, 2021 and aims to take and hold the throne of risk coverage platforms on the market.