Bridge Mutual V2: The Great Reinforcement is live!
The platform introduces new features to the world of decentralized insurance.
Bridge Mutual Community,
The Great Reinforcement is upon us!
We are extremely happy to announce that Bridge Mutual V2: The Great Reinforcement is live and open to the users! The platform is live and operational after months of deployment and relentless testing (including community beta testing)!
TL;DR:
- Bridge Mutual is a decentralized, NO-KYC coverage platform that allows users to purchase insurance for their crypto portfolios and underwrite policies with stablecoins in exchange for an attractive yield. The platform is supported by Tether, collaborates with Sushi, and is already fully operational. Find general information about Bridge Mutual V1 here. Read V1 Whitepaper here.
- Bridge Mutual V2: The Great Reinforcement, a massive upgrade to the platform, launches now. It's a big deal. Massive capital efficiency improvements make the APYs higher and policy prices lower.
- Value proposition: earn high APY on your stablecoins by providing coverage liquidity and/or purchasing insurance policies against hacks and rug pulls and fully protect your portfolio. Earn tokens through voting on claims.
- Bridge Mutual is for everyone, everywhere — anyone can purchase or provide coverage (individual or entity). The platform is privacy-oriented and has no KYC.
- V2 introduces Capital Pool, an investment arm of Bridge Mutual, that will invest idle liquidity into 3rd party Defi protocols and generate revenue for Bridge Mutual's vault and (indirectly) for BMI token holders.
- V2 also introduces leveraged portfolios, which allow users to underwrite insurance for many projects simultaneously, and with various risk parameters. Leveraged portfolios will offer relatively consistently high APYs for liquidity providers who are willing to accept the underlying risk while at the same time decreasing the price of the policies for new users.
- Other features include shield mining, an affiliate widget, and the refreshed design of the platform.
Why Insurance?
Current DeFi protocols are already utilizing financial mechanisms such as collateralized loans, exchange fees, price options, and numerous derivatives. However, as we precariously observe and study the expanding industry, we recognize a lack of a variety of insurance and risk hedging products, especially fully decentralized ones. According to Ciphertrace, more than 60% of attacks in the crypto space were DeFi- related. As the overall TVL and the numbers of users increase, so does an opportunity for hackers and scammers. Defi is only as strong as the code that governs it, and the number of attacks will only grow in time. Because the risks will only continue to rise, there is a strong case for a decentralized and accessible insurance protocol that optimizes itself in accordance with the community requirements. At the same time, if the industry is to mature, users should be able to diversify their farm strategies with high APY insurance products. Both of those objectives (and more) can be achieved by a protocol that allows the market to underwrite insurance products and purchase a policy for crypto assets.
Enter Bridge Mutual.
Deployment of Bridge Mutual V2
Bridge Mutual Version 2: The Great Reinforcement going live is a great milestone for the team and marks a conclusion of an 8+ months effort of designs, standups, discussions, video calls, sometimes uneasy decisions, and moments of celebrations.
We called this upgrade "The Great Reinforcement" for three reasons:
First, to reinforce the Bridge Mutual platform and its community with better tools and resources to protect themselves against losses and threats in the crypto sphere. Making no-KYC crypto-insurance cheaper, better, and more widely accessible (few clicks).
Second, to create a safe, transparent, and incentivized environment for coverage providers (investors) to use their crypto for underwriting insurance policies in exchange for a yield. The Insurance industry and blockchain fit perfectly together, and it's about time that users get unrestricted access to that potential. V2 introduces sophisticated, permissionless, and transparent insurance-like pools that will generate yield in exchange for bearing an insurance risk. Community is now reinforced to use products that were never as accessible as they will be now.
And finally the third, for which we are most excited about. All the V2 features are interconnected and reinforce one another. Coverage pools fuel the availability of insurance policies. Leveraged portfolios use coverage pools to attract even more liquidity (of different risk parameters) and drive down the price of policies across the platform, which translates to increased policy sales. Increased policy sales transfer to higher coverage pools APYs, and the cycle continues to rise, all in the purpose of providing value to the end-user.
All the idle coverage liquidity is being used by the Capital Pool, an investment arm of the Bridge Mutual Protocol, to deploy funds into third-party yield generation projects. The yield generated comes to Bridge Mutual vault (owned by the BMI holders) and can be used to decrease the policies' prices further, initiate BMI token buybacks (buy pressure), or other initiatives. The protocol has its own funds and can work with it. Capital Pool revenues join the existing revenues from policy sales (20% of the premiums go to the Bridge Mutual vault). The protocol is designed and intended to be a sustainable machine, regardless of the market cycle.
All this is decentralized and privacy-oriented by design. Bridge is a tool built by the community, for the community.
Please note that Bridge Mutual V1 will still be open for users to withdraw and migrate their remaining rewards during this process.
Overview of V2 features:
Leveraged Portfolio(s)
Bridge Mutual V2 introduces Leveraged Portfolios, which consists of a distinct pool dedicated to users who may deposit their funds for leveraging. Although exposed to more risk than regular Coverage provider funds, leveraging will offer a much higher APY than a standard coverage. This feature will allow users to utilize new yield farming strategies for higher yields with rewards in stablecoins, BMI tokens, and Shield Mining tokens.
The value proposition for users:
- Exposure to riskier high-reward pools with attractive APYs.
- Opportunity to utilize new yield farming strategies for even higher APYs.
Reinsurance Pool
Bridge Mutual's Reinsurance Pool (RP) incorporates protocol-owned funds. The interest is earned from 3 factors: DeFi Yield Generator, Protocol Fee, and Reward Pool. The reinsurance pool acts as an internal coverage provider, which may significantly de-risk the protocol at no additional expense for regular Coverage Providers. With Bridge Mutual's Reinsurance Pool, The Protocol Fee will be 20 percent, a portion of the Premium paid by Policyholders. As for the Reward Pool, a part of the 80% premium will be allocated to reward Coverage providers.
The value proposition for users:
- Increased supply of much cheaper coverage on selected pools.
- Improved operations and increased capital efficiency directly translate to Bridge Mutual's overall value.
Capital Pool
The Capital Pool is the main pool responsible for the circulation of funds within the system. It aggregates USDT funds from all Coverage Pools, the Reinsurance Pool, and the Leveraged Portfolio(s). Additionally, it re-deploys to third-party protocols, enabling a small portion for withdrawals and claims while rebalancing daily to certify continuous operations and payouts.
The value proposition for users:
- Externally oriented liquidity pool capable of interacting with the entire world of DeFi (yield farming).
- Idle funds are utilized to generate yield, which can be potentially re-distributed to BMI holders.
Shield Mining
The Shield Mining feature is designed to encourage users and projects to provide X tokens into Project X Coverage Pools. This will enable community members to promote their project pools to attract and gain additional liquidity for their coverage. Bridge Mutual V2 also permits Leveraged Coverage Providers the potential to receive rewards in BMI, USDT, and the project X token.
The value proposition for users:
- Developers and community members can promote their project coverage pool by depositing project X tokens and attracting liquidity with an increased APY.
- Exposure to multi-token rewards.
BMI Widget
The Bridge Mutual widget is an easy-to-implement tool that enables BMI affiliates to sell coverage policies and directly raise liquidity through their applications. The front-end element will connect to partnered projects' interfaces that allow users to utilize a seamless coverage process within their platform. This feature will empower more users to participate in the Bridge Mutual safeguarding method and facilitate earnings as a BMI affiliate with no up-front investment.
The value proposition for users:
- Earning as a BMI affiliate with no up-front investment
- Personal branding benefits
BMI Mobile Version
As the BMI community grows, more users are relying on the platform. Following the recent UI/UX update, Bridge Mutual has also extended its efforts to run smoothly on mobile browsers, fit for browsing and interacting on smaller touch screens. Bridge Mutual consistently aims to make the application more accessible to anyone from anywhere.
The value proposition for users:
- Access to all Bridge Mutual functionalities anytime and everywhere from your mobile.
- Monitoring of your coverage portfolio will now be easier and faster.
Participate in the decentralized insurance revolution
It all starts with the Bridge Mutual app and our community.
All Bridge Mutual V2 users are now free to purchase coverage for their crypto portfolio and start diversifying their yield strategy as insurance underwriters. They are also free to farm with their BMI tokens on SushiSwap (search "Farm" section for BMI).
BMI tokens are at the center of the platform's future and will become more and more scarce over time. Bridge Mutual will port to Solana, Binance Smart Chain, and Polygon (as well as likely other chains) in the near future. The overall supply of the tokens will remain constant, while the platform will start working with projects in many different ecosystems. To address their respective demands, adequate numbers of BMI tokens will be ported to different ecosystems.
V2 infrastructure, flexible and capable of hosting limitless insurance products (smart contract coverage is the first of many to come), will forever be governed by BMI's. The team's vision is to expand the protocol to as many chains as possible so that all ecosystems can benefit from the value proposition of decentralized insurance.
What's next?
More protocols on the platform, focus on marketing, lots of optimizations, and scaling.
Bridge Mutual DAO is scheduled to launch in February 2021, enabling BMI holders to create proposals and participate in the project's overall governance. We had strategically concluded to wait to start delivering any DAO news until after the public launch of V2, as we want the community to work on the latest possible version of the platform.
The DAO will enable vBMI holders (BMI stakers) to initiate discussions, proposals, and voting procedures, and consequently, directly influence the strategy and operations of the Bridge Mutual protocol.
Shortly after the DAO, Bridge Mutual multi-chain will follow. Users can expect Bridge Mutual to function on Solana, BSC, and MATIC (Polygon).
Solana's development is ahead, but it's also much more challenging than the other two, especially given the V2's overall complexity. To provide you with an idea, Bridge Mutual consists of almost 18,000 lines of solidity code which is huge by industry standards. For comparison purposes, Aave has approximately 7356 lines, and Uniswap V3 has 5000.
Once V2 is fully operational with Ethereum, we will be updating the community about multi-chain progress.
Going multi-chain will accelerate protocol development. Each chain will bring new liquidity, new covered protocols, and new marketing opportunities.
Thanks from the team to the community
Our team, led by Mike Miglio, our CEO and founder, and Lukas NN, our COO, consists of almost 30 members — each individual with heavy daily tasks to ensure the best performance of Bridge Mutual.
Fast forward a year later, the small circle of early adopters turned into thousands of engaging and dedicated members that we are happy to call our community. Early partnerships opened bigger partnerships, action plans turned into massive developments, and product visions turned into product launches.
As we progress our way into the new year, we want to thank each and every one of our dedicated members for supporting us this far. We are all collectively aiming for one goal: to provide anyone, anywhere, with the latest technological tools to protect their assets and participate in the collective prosperity of DeFi.
According to ImmuneFi, DeFi faced $10B in hacks and losses just in 2022. CryptoNews and Ambcrypto suggest that crypto hacks may escalate this year, which makes it even more important for Bridge Mutual to lead and protect the space.
This is a proud moment for us. Although we have come so far, we still have many more milestones to meet and objectives to accomplish. If you happen to be a new user, we kindly invite you to join our communities on Twitter, Discord, and Telegram, as well as welcome your first steps of protecting your assets on Bridge Mutual. If you've been with us for a while, thank you for your continued support. You're the reason why we're building.
Back to work,
Bridge Mutual team.
About Bridge Mutual
Bridge Mutual, a decentralized coverage platform, is on a mission to become the #1 crypto-armorer of Decentralized Finance and equip everyone with protection against universal crypto threats. We are a fully decentralized, p2p/p2b discretionary risk coverage platform covering smart contracts, stablecoins, centralized exchanges. Our platform allows users to provide coverage, decide on policy payouts, share profit, and get compensated for adjudicating claims. Users can get protection and provide one in exchange for yield. We focus on great product design, pro-community business objectives, and synergy with other web3 innovations.
Website | Telegram | Medium | Twitter | CoinGecko | Youtube | Gate.io | Bitfinex | Discord | Gitbook
