VYSYN VENTURES Strategic Position in Bridge Mutual
Smart contract hacks and stablecoin bug exploits have been ubiquitous in recent years. In 2020 alone, hundreds of millions of dollars in DeFi-locked capital was lost. This capital could have easily been insured with reimbursements made to those who suffered hacks or lost capital due to lack of liquidity. In the traditional markets, insurance has been a staple of how the system operates. It has freed investment capital which would have otherwise been frozen by excessive risk. It is inevitable that a dominant entity will emerge to provide insurance solutions for the rapidly growing field of cryptocurrency exchanges and decentralized finance. VYSYN VENTURES is strategically investing in Bridge Mutual as they hold the attributes which strongly suggest that they will one of the leaders in this field.
● Capable executive team led by a CEO who has worked with blockchain projects including Akropolis, Certik, Kinesis, NOIA, QTUM, FABRK and Gate.io.
● Deploying a decentralized marketplace with an incentives system that allows participants to seamlessly insure one another and get reimbursed in the event of a market attack or crash.
● Built on the Polkadot blockchain which offers lower fees and faster transaction times than Ethereum.
● Stablecoins, smart contracts, and centralized exchanges can be insured.
● Potential multi-trillion dollar market size.
The traditional insurance market is currently valued at roughly $5 trillion. Current insurance solutions which emerged this year in DeFi and are valued at just $290 million. However, current insurance solutions have many drawbacks. They are primarily operating on Ethereum which has been subject to excessive fees in recent months. Moreover, the claims process is complicated and it can take up to 90 days for withdrawals and they do require KYC.
Bridge Mutual insurance coverage exists entirely within on-chain smart contracts on the low-fee Polkadot blockchain. Participants can easily make claims and withdrawals only take up to 30 days. No KYC required. While other solutions only insure smart contracts, Bridge Mutual users can insure smart contracts, stablecoins, and centralized exchanges. The insurance of stablecoins alone has huge market potential. Stablecoins are valued at over $20 billion and Bridge Mutual will be the first to insure this market. The process for securing insurance on Bridge Mutual is seamless and will be intuitive for current DeFi users to adopt. Those providing insurance cover buy and stake BMI tokens on a project which they believe has a low risk of failure. Insurance providers will earn 20% of premiums and also earn returns from on-chain investments. Those purchasing coverage can do so easily with BMI, DOT, ETH, or USDT.
As Bridge Mutual approaches the launch of its MVP in early 2021, VYSYN Ventures is excited to invest in this emerging technology. We assess that Bridge Mutual has a high chance of becoming a leading platform for DeFi insurance coverage. When you combine this with the rapidly growing cryptocurrency market conditions of recent months, Bridge Mutual has high upside potential and VYSYN is thrilled to commit our long-term support to the project.