The Insurance checkmate by EasyFi
Insurance is a very important part of economics so much so that there is virtually nothing that cannot be insured these days. We live in a world where "circumstances beyond our control" can inflict pain, cause harm or perpetuate damage against our belongings, projects or even our very own lives. These things happen despite the presence or lack of precautionary measures. We do, however, have control over how we react or get up from these setbacks. That’s by making sure that everything is insured. When you’re under an insurance policy, you get back what you’ve lost (if there’s any case of a loss). There are things that shouldn’t be talked about but the events of the April 19, 2021 incident still lives fresh in our minds and a repeat of that is something that should be prevented. If it does happen again, it would be a disaster. A crucial blow that would be nearly impossible to rise up from. EasyFi Network made positive comments towards that direction in the much-talked-about Reinstatement plan.
What was said?
In a move which they said would add another layer of risk mitigation to increase security and boost confidence for the EasyFi protocol users, they agreed that they would partner various insurance cover providing protocols that would help protect the users' collateral positions. These had to be protocols skilled and well referenced with exploits in the Insurance sector. So what did EasyFi do?? Your guess is as good as mine.
What was done?
EasyFi partnered Tidal Finance in a crucial collaboration aimed at enabling insurance on its lending protocol for digital assets, thus allowing users to choose the level of risk engagement in pools depending on how much risk they are willing to take and also enable the users to customise their insurance needs.
In summary the partnership will
1. Provide insurance for EasyFi smart contracts.
2. Protect the EasyFi platform in security matters by securing all digital access set as collateral by users for lending.
3. Allow EasyFi start deeper integration for liquidity pools with metrics that would allow or help users evaluate risk.
4. Create custom insurance pools for users.
It is believed that the move would give the protocol users a renewed sense of belief and security. EasyFi Network has indeed risen from the depths like the proverbial phoenix.
About Tidal
Tidal is the first cross-chain DeFi insurance platform that makes DeFi safer by providing insurance coverage for assets across chains in custom balanced liquidity pools.
Website | Medium | Twitter | Telegram
About EasyFi Network
EasyFi Network is the top Layer 2 DeFi lending protocol that’s highly scalable, composable and focused on adoption. Built in line with Permissionless networks and automation of smart contracts, EasyFi is showing us that we can do more with DeFi.
Website | Twitter |Telegram | Whitepaper
