Bridge Mutual brings safety to DeFi with Plasma.Finance partnership
One of the main concerns for the recent flood of new users entering the digital asset space is the safety of their funds. Before they even deposit their money on popular fiat on-ramps and service aggregators, they have already heard all about Mt. Gox, the KuCoin heist, or any of the exploits in decentralized finance protocols.
It is no surprise that these services are looking into solutions that could afford users some peace of mind. Ultimately, this would attract larger investors to some of the more interesting areas of blockchain development that make up the DeFi space.
PlasmaPay and Plasma Finance are a cross border payment service and DeFi aggregator that have found such a solution in Bridge Mutual, a decentralized insurance provider. Its novelty lies in being a discretionary p2p and p2b insurance platform that covers stablecoins, centralized exchanges, and smart contracts. This coverage is funded by users who decide on insurance payouts while receiving compensation for taking part in the ecosystem.
As a result of a partnership with Bridge Mutual, Plasma Finance users will be able to directly fund or provide liquidity to an insurance service while Plasma Pay’s popular fiat on-ramp will guarantee that it is accessible to a growing number of investors. In return, Bridge Mutual is set to use some of its own liquidity to jumpstart a PlasmaPay insurance pool where users providing coverage may earn PPAY tokens as a reward.
PlasmaPay and Plasma Finance can now provide both old and new investors with better assurances on the safety of their funds while also offering new opportunities. On the other hand, the influx of users with newfound access to Bridge Mutual’s protocol deepens its liquidity and strengthens its services. This makes both partners stronger, more solvent and more secure.
Bridge Mutual CEO Mike Miglio believes that the partnership will “increase the overall safety of the DeFi space by encouraging users to protect each other.” His new partner, PlasmaPay CEO Ilia Maksimenka, agreed that it was “a net benefit for two strong projects looking to optimize the DeFi market as a whole,” and that “ease of use and access to insurance ultimately benefits users.”
Disclaimer: This article is a paid post and must not be considered as news/advice.