Tidal Finance (TIDAL) coin is a multi-chain open market for programmable insurance that allows users to create custom insurance pools for a variety of assets. With team stats and ratings, it is the most efficient smart contract insurance marketplace launched in the ecosystem .

(Total cost locked) in space DeFi grew from $500 million to $9 billion in less than six months. All large sums are transferred to different financial protocols with attractive returns. The sudden explosion of the ecosystem and the continuous release of advanced financial protocols has greatly increased the demand for financial products that protect against hacker incidents that lead to capital loss. Insurance is the basic infrastructure of the financial system that allows more people to participate in decentralized financial investments and cryptocurrencies.

Tidal Finance has innovative insurance solutions such as Nexus Mutual's policy insurance which has received a lot of attention over the past few months.

Over $9 billion in Unsecured Smart Contracts, a new insurance protocol is needed to keep pace with the exponential growth of products , gives users and projects the tools to create the coverage they need.

Tidal Finance Insurance for Polkadot . Ecosystem

TIDAL is an insurance marketplace like Balancer built on with features for creating custom coverage groups for one or more assets from multiple chains. Tidal Finance has developed an open market protocol to maximize capital efficiency in order to attract LPs while offering competitive premiums to attract buyers.

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The platform introduces four key features:

Create an insurance group:

Coverage groups can be created by selecting one or more policies to cover. For example, an insurance pool can be a mixture of different coins on different platforms (Compound Dai, , YFI, Balancer , mStable , etc). Team creators have the ability to choose any asset from any platform available on the market, as well as adjust the appropriate duration, leverage ratio, etc.

Statistics and group ranking:

Pool stats will be displayed and tracked to help LPs and buyers choose the product that best suits their needs. Users can also view groups by ranking orders with a weighted average of all KPIs.

Here are some examples of key indicators:

  • Current (and maximum) capital of the group,
  • Current (and maximum) return on equity,
  • Current (and maximum) insured amount,
  • Capital / insured amount (% partial reserve),
  • Estimated in-app payout next,
  • Evaluation of the closed audition under the contract,
  • Total amount paid so far,
  • Total amount of bonus earned.

Control Algorithm:

To avoid bankruptcy, Tidal Finance will provide team creators with a set of guidelines and controls to minimize the risk of each pool. This action is performed by some control algorithm that is initialized at startup. Here are some implementation rules:

  1. The reserve level cannot fall below a certain rate, depending on the contract rate in the pool;
  2. Some coins will be flagged for their unaudited status, which will require a higher capital reserve;
  3. The insured period will also be limited to a few months instead of several years if the capital reserve is less than the insured amount;
  4. Pools that offer higher leverage will pay correspondingly higher issuance fees to Treasury wallets, which are used as a form of uptime reserve fund.
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Rate the payments:

The checkout process is community driven. When a claim arises, TIDAL token holders will perform due diligence, who have staked their tokens during due diligence. The majority of votes (over 70%) will decide the outcome of the payment. Accordingly, the auditors from the protocol team will conduct a final review, if the result is rejected, a second round of voting will be held with the participation of all TIDAL token holders.

Token TIDAL

TIDAL tokens will be used to operate and operate the TIDAL platform. The tokens are designed to reward team creators, LPs, and insurance early adopters for accelerating product adoption.

Protocol fee

TIDAL token holders are entitled to receive a portion of the commission generated by the TIDAL protocol. Most of the commissions generated by the protocol will be deposited into the Treasury wallet as a reserve fund in case the insurance team runs out of reserves to pay claims. However, a certain percentage of commission will be distributed to TIDAL token holders as a form of profit distribution and incentivize users to become active participants in the ecosystem.

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Project team

Currently Tidal Finance has not announced much information about the team behind. In which Chad Liu is the current Founder and CEO of Tidal Finance.

Investors

Tidal has successfully raised capital from major investors in the industry and such as AU21 Capital, NGC Capital, Genesis Block, Kenetic Capital, Hillrise Capital, etc.

These are all famous investment funds such as AU21 Capital, Genesis Block or NGC Capital. They have invested in many projects, including many projects in the insurance sub-sector such as AU21 investing in and pouring capital into the Nsure network.

Partner

Currently, Tidal Finance has been a partner providing insurance solutions for many decentralized finance projects, including many prominent names such as Stone Defi, Equilibrium, Egdeware, Cere Network, Konomi, Stafi Protocol, Reef Finance, UniLend, bZx Protocol, Crust Network, etc. These are all newly launched potential projects in many different sub-sectors.

Conclude

Tidal Finance is a project that provides decentralized hedging solutions for DeFi protocols. Currently on the market Insurance is a new, low-competition segment, so Tidal Finance will have a lot of land and potential to thrive in the future.

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