Key Takeaways
- Bridge Mutual is an innovative risk coverage platform that lets users buy and underwrite insurance for crypto assets and protocols.
- Using Bridge Mutual’s Leveraged Portfolios feature, users can underwrite insurance for multiple coverage pools simultaneously and earn a relatively high, stable yield on USDT deposits.
- Unlike other similar protocols, Bridge Mutual has no KYC requirements because it is decentralized, permissionless, and privacy-focused.
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Bridge Mutual is a decentralized coverage platform that lets users purchase or underwrite insurance for crypto assets, decentralized protocols, and various centralized services. Users can protect their crypto portfolios from hacks, bugs, exploits, and rug pulls, or earn high yields on stablecoins as insurance underwriters.
Bridge Mutual Explained
Crypto, and especially decentralized finance, has seen staggering growth over the last two years. The global crypto market capitalization has grown from roughly $200 billion at the beginning of January 2020 to around $2.25 trillion nearing the end of this year. The total value locked in DeFi protocols, meanwhile, has soared from roughly $500 million to over $244 billion over the same period.
Unfortunately, this parabolic growth has been accompanied by a huge increase in hacks, exploits, and other security-related issues, resulting in significant losses of users’ funds. According to data from blockchain intelligence firm Elliptic, over $10.5 billion in value was lost due to theft and fraud in the sector in 2021 alone. Around $2 billion of that was stolen directly from decentralized applications.
The high number of attacks has increased the demand for risk-mitigating solutions. Projects typically seek to reduce the risks from bugs, hacks, or exploits by offering lucrative bug bounty programs and hiring third-party smart contract auditors. For investors, however, these procedures almost never guarantee complete safety, as the industry has already seen multiple seasoned and fully audited protocols experience costly security breaches.
One of the most reliable solutions for crypto investors has been purchasing smart contract coverage policies for crypto assets. One of the few crypto protocols that offers such insurance-like products is Bridge Mutual—a decentralized and permissionless discretionary risk coverage platform that lets investors buy or underwrite insurance policies for crypto assets, decentralized protocols, and various centralized services.
Bridge Mutual’s chief executive officer Mike Miglio and chief of operations Lukas Napiorkowski sat down with Crypto Briefing to discuss how the protocol works, and Napiorkowski revealed that the project took inspiration from another decentralized crypto asset cover provider, Nexus Mutual. However, Bridge Mutual takes a different approach in that it is permissionless. Napiorkowski explained:
“While Nexus Mutual admittedly inspired us, we’re going a different…
Read More: cryptobriefing.com