Bridge Mutual WORKS! First Claim APPROVED and PAID Following Popsicle Finance Hack!
Bridge Mutual’s very first claim for coverage has just been approved and paid out just 14 days after the $20M+ Popsicle Finance hack; this is a testament that Bridge Mutual’s risk coverage protocol is fair, functional, and actively providing coverage against hacks and exploits.
On August 4, 2021, Popsicle Finance’s v3 Uniswap LP pools were drained by an attacker, and $20.7M in user funds were lost. The Popsicle Finance team responded quickly and transparently, however the funds were permanently lost.
The Popsicle Finance coverage pool was one of Bridge Mutual’s genesis coverage pools created during the launch of Bridge Mutual. One of the users on the Bridge Mutual platform (henceforth known as “0xca7”) had purchased a $50,000 coverage policy to cover their Popsicle Finance LP position.
The owner of the policy made a claim and submitted appropriate evidence within a few hours after the hack had occurred. The community then came together on Discord and discussed the merits of the claim. The community was overwhelmingly in agreement that the claim was valid and that it should be paid out, and over 70 BMI holders in the community voted on this claim.
In the end, 0xca7 was paid back $49,982 USDT from Bridge Mutual’s Popsicle Finance pool out of the $50,000 policy maximum.
Because the claim was successful, 0xca7 was also automatically refunded the BMI that it cost to file the claim.
Today marks a historical event for the Bridge Mutual platform and for the future of decentralized risk coverage. Bridge Mutual’s goal is to become a fully permissionless, decentralized, and DAO-controlled protocol.
No one can prevent a claim from being filed or unfairly influence/control the result of a claim on the protocol. It is solely up to our anonymous userbase, who are incentivized to vote honestly, to control the outcome and payout of every claim on the protocol.
More about how Bridge Mutual voting works
Users on Bridge Mutual vote anonymously and cannot see how other users on the platform are voting on claims before the voting round ends. Thus, users are forced to assess all of the evidence submitted by a claimant and judge for themselves how to vote. Users are then rewarded or punished based on whether they voted in the majority or the minority.
The platform utilizes game theory concepts and economic incentives to encourage honest votes, justified payouts, and a fair process. To learn more about this, read the Bridge Mutual Whitepaper here.
As a user, you may purchase a custom risk coverage policy to protect your assets for a fraction of their value; check the app out here: Bridge Mutual platform.
The Bridge Mutual team believes in offering decentralized, anonymous, fully permissionless coverage policies, empowering crypto communities to share risk and “armor” themselves against all threats.
To learn more about Bridge Mutual and its application, visit bridgemutual.io.
About Bridge Mutual
Bridge Mutual is a decentralized, discretionary risk coverage platform covering stablecoins, centralized exchanges, and smart contracts. Its platform allows users to provide coverage, decide on policy payouts, share profit, and get compensated for adjudicating claims.