Bridge Mutual Confirms Official Launch & Coverage Mining Event
It has been almost a year since we started developing the first product drafts of the Bridge Mutual Protocol. We spent these intense ten months building the world’s premier risk coverage platform, designed to be the most permission-less and decentralized platform on the market today.
The team has grown to over 30 people, and our vision has expanded exponentially into a suite of innovative products with a multi-year development plan. Today, another significant milestone is materializing in front of us: we are very happy to announce that the official launch of V1 Bridge Mutual will take place on the 9th of July 2021!
This date marks a key milestone in Bridge Mutual’s history so far, and the entire BMI team would like to thank Bridge Mutual’s community for its support and for sharing the vision of disrupting the world of coverage and decentralized risk pooling. As a token of our gratitude towards our community and amazing partners, we decided to kickstart our launch with a team-based Coverage Mining Event with almost 6 million BMI tokens as rewards to be distributed among participants.
The Coverage Mining Event will start on the 9th of July and will last for 14 days, ending on the 23rd of July 2021.
Bridge Mutual’s Coverage Mining Event advocates a fair launch approach, where early supporters, both individuals, and projects, will get the opportunity to accumulate a significant amount of BMI tokens and become relevant members in the upcoming DAO.
The rest of this article will discuss the details of the Coverage Mining Event.
Summary — During the event:
- Participants (both individual users and projects alike) will provide liquidity to their project coverage pools of choice. The higher the utilization ratio of the project coverage pool, the higher the APY for the coverage liquidity providers.
- Participants provide coverage liquidity in USDT stablecoins.
- Users will be able to create teams and compete against other teams for rewards. Teams will be ranked in order by the most amount of coverage they have provided.
- 5,500,000 BMI tokens will be distributed in emission to participants, with 450,000 BMI extra tokens being distributed to the top ten teams.
- In addition to that, the top individual contributors will receive special utility NFTs which will have meaningful effects on the Bridge Mutual ecosystem and will be tradeable on the secondary market.
- Only selected mainstream and partner projects’ coverage pools will be present on the platform during the event. After 14 days, any project can join the effort and take advantage of the rewards.
Registration of the teams will open on the day of the launch.
Detailed Description of the Coverage Mining Event
What is it?
Bridge Mutual’s Coverage Mining event kickstarts the creation and liquidity provision for Projects Coverage Pools.
Project Coverage Pools are the source of coverage for any given crypto project on the Bridge Mutual Platform. The bigger the Pool, the more coverage there is available to the users. The more coverage available, the higher the investors’ confidence and risk tolerance regarding the project being covered — users will naturally lock bigger portions of their assets into projects that they can get coverage for. The more they lock in various projects, the more coverage they’ll need. A positive spiral of risk — hedging. Wider availability of coverage should become a natural element of yield farming strategies and longer staking positions.
The process of creating coverage pools on Bridge Mutual will eventually be open and permission-less — everyone will be capable of creating and providing coverage liquidity for any project, and Bridge Mutual’s DAO will be responsible for assigning extra rewards distribution for those coverage liquidity providers. Supply and demand will be the primary forces determining the size and utilization ratio of the coverage pools.
During the Coverage Mining Event starting on the 9th of July, only pre-selected pools and whitelisted projects will be present on the platform. This is to ensure that rewards are distributed towards liquidity providers of established and reliable projects, which ensures a healthy start to our ecosystem.
During the event, which will last 14 days, our partner projects will provide some initial liquidity to their own pools, enabling their communities and others to buy coverage immediately. Any user is able to provide additional liquidity to these pools.
In exchange for their liquidity, coverage providers will receive yield (80% of all the premiums paid for coverage + a substantial part of the Coverage Mining Rewards + NFTs if they happen to be among the largest contributors).
Nearly 6,000,000 BMI tokens will be distributed among coverage liquidity providers throughout the event.
(Pic. 1: Coverage Mining Event, Project X positioning)
What are the rewards?
5,500,000 BMI tokens are designated to be split proportionally among all coverage providers participating in the Coverage Mining Event, and 450,000 BMI bonus tokens are given to and split among the top ten teams during the event.
Rewards are distributed in the form of BMI tokens and the final amount received depends on 3 things:
- The Amount of Project Pools
Rewards are distributed to all the Project Pools currently on the platform.
The smaller the number of projects, the bigger the proportion of rewards Coverage Providers get. We anticipate roughly 15 to 30 coverage pools available at launch.
Coverage Providers at the Coverage Mining Event get much larger rewards as they are less diluted (compared to when the platform opens and the number of pools greatly increases).
2. The size of the Project Pool
The bigger a pool is compared to others currently available on the platform, the bigger the number of rewards allocated to that pool. A flat amount of tokens is distributed per block, and these are divided across all pools according to their size.
Projects and other coverage liquidity providers are economically incentivized to create pools as large as possible.
3. Utilization Ratio of the Project Pool
The rewards increase when the demand for coverage grows. The utilization ratio represents the ratio of the Coverage Pool capacity to the Policies purchased. The higher the demand, the higher the utilization ratio. The higher the ratio, the higher the rewards.
Promoting the project’s coverage pool cross-community should generate enough demand to raise the utilization ratio and further increase the % of rewards received.
Teams and NFT rewards
During the Coverage Mining Event, participants will be able to form teams via a special team referral link.
- The total score of a team is the sum of all the contributions of its team members; teams compete against other teams for most coverage provided.
- Teams and individuals that provide the largest amount of liquidity will be rewarded with a major portion of the Coverage Mining Event rewards — 5.5 million of BMI tokens, with the top ten teams alone receiving an additional 450,000 BMI.
- The more capital the team has collected, the bigger the token rewards they will receive.
- The tokens will be distributed proportionally to the amount of USDT each team member has provided.
- The top team that contributes the most liquidity will split 150,000 tokens distributed at 30,000 tokens per month from the end of the event.
- The top 2 to 5 teams will split 50,000 tokens distributed at 10,000 tokens per month.
- The top 6 to 10 teams will split 20,000 tokens distributed at 4,000 tokens per month.
- Based on the amount of funds collected, the 10 top teams will be rewarded with the NFTs.
- The top 5 contributors for the ENTIRE event, regardless of team, will receive:
- 5 Platinum NFTs.
- The top 10 contributors on each team will get:
- 1 Gold NFT.
- 3 Silver NFTs.
- 6 Bronze NFTs.
- The more USDT the member of the team has committed, the higher rank and better NFT they get.
The various utilities of the NFTs will be announced at a later date — they’ll have a meaningful impact within the Bridge Mutual ecosystem.
We invite the Bridge Mutual community to spread the word about the Coverage Mining Event and encourage them to begin planning their teams. If you have any questions or suggestions, please feel free to contact us on our Telegram channel or post a comment under one of our Twitter posts!
You can participate in Bridge Mutual’s growth by getting your token on Uniswap or Bitfinex , and then staking it for rewards within the Bridge Mutual’s app. For a detailed walk-through of the Bridge Mutual’s innovative system, visit our Youtube channel.
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.