2020 saw an explosion of decentralized finance (DeFi) applications, propelling the market to its current total value locked (TVL) high of almost $35 billion.
There have always been bad actors looking to exploit the cryptocurrency space. According to Bridge Mutual, over $200 million in digital assets were lost or stolen last year in DeFi-related mishaps.
Bridge Mutual offers users and platforms the opportunity to mitigate these risks by creating a decentralized risk management platform that provides discretionary coverage against hacks and loss of funds from vulnerabilities.
This has led to a partnership with Ferrum Network, one of the most popular staking platforms available on the market. Their goal is to enable protective coverage to users and projects with value staked on the network.
Providing Protection Against Lost of Funds
Before the availability of decentralized risk coverage, users were beholden to the platform to protect their funds. While third-party auditors review many projects, some platforms remain unaudited, making them especially vulnerable and giving no assurance to platform users if something happens to their funds.
Ferrum Network offers DeFi services across a variety of blockchains, making it easier for users to stake on a single platform. Now, users staking coins across the 45+ projects offered on Ferrum will have the option for additional protection. This will be especially advantageous to yield farmers and users who stake large amounts of wealth, removing the fear of losing all their crypto and ending up stuck with nothing.
BMI Staking Services
The Bridge Mutual ecosystem runs on BMI, the native cryptocurrency of the network. Before this partnership, the only way for BMI holders to earn passive income on assets was through providing liquidity. This is a potentially risky endeavor due to the possibility of an impermanent loss of tokens from price fluctuations.
Following this new partnership, BMI owners will have the option to stake their tokens on Ferrum Network and generate a more stable and predictable yield. Starting on Feb. 10, users can begin staking their BMI to earn rewards.
How Does Bridge Mutual Work?
Bridge Mutual is a peer-to-peer and peer-to-business discretionary risk coverage platform. Through smart contract utilization, Bridge Mutual can offer coverage for centralized exchanges, stablecoins, and smart contracts, mitigating the potential losses from network vulnerabilities.
Currently, Bridge Mutual is the largest decentralized risk coverage platform by total token holders and fully diluted market capitalization.