Opium and UMA Unveil DeFi Insurance for SpaceX Launches

Share Article
In Brief
  • Launch failure insurance derivatives for SpaceX clients.

  • Optimistic oracles used for fast, low-cost transactions.

  • OPIUM and UMA prices see solid gains.

  • promo

    Gravity Dex Protocol: Bringing DeFi to Cosmos

The Trust Project is an international consortium of news organizations building standards of transparency.

The decentralized finance (DeFi) synthetic derivatives Opium Finance protocol has entered into a partnership with Universal Market Access contracts platform UMA. The aim is to launch decentralized SpaceX insurance using UMA’s Optimistic Oracle.

Sponsored



Sponsored

In an announcement on May 24, Opium stated that its decentralized insurance contract (CDS) will work in tandem with UMA’s oracle solution to bring real-world data to the blockchain.

There was a surreptitious Dogecoin plug in the tweet that also tagged SpaceX founder Elon Musk.

Sponsored



Sponsored

“We’d joined our efforts to launch a new ‘cosmic’ product – decentralized insurance on SpaceX. Hope @elonmusk will take it to the moon together with Dogecoin.”

DeFi insurance for failed launches

The derivatives work as binary options contracts, allowing users to purchase insurance against a failed launch on SpaceX. Using the SmallSat Rideshare program, organizations can send lighter and smaller payloads to space for as low as $1 million.

The announcement elaborated:

“The financial instrument can be used to hedge financial risks related to the SpaceX launch and even to generate some income.”

The derivative seller essentially offers insurance coverage for a failed launch by locking an amount of money as collateral and earning a premium in the process. These DeFi derivatives allow for risk management and speculation in a globally accessible and non-custodial manner, it added.

SpaceX already offers insurance at around 5% of the value of the payload, and Opium and UMA are attempting to compete with that.

To ensure high-speed, low-cost transactions, the offering will utilize UMA’s Optimistic oracles.

Just like Optimistic rollups, the Optimistic oracle operates on the assumption that one party sends a request and another party pushes the answer on-chain. Disputes can be raised if either party thinks there is something wrong, otherwise the transaction is completed quickly and with minimal network fees.

Opium, which offers a range of leveraged derivatives, launched TurboETH trading in late April to offer higher risk exposure to Ethereum markets.

OPIUM and UMA price reaction

Opium’s native token of the same name has surged 24% over the past 24 hours at the time of press, reaching a price of $3.68. The token is still way down from its $23 all-time high on Feb. 4, however.

UMA has also gained well today with a 13% increase to reach $13.46. It too is a long way down from a $45 ATH in early February.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Martin has been covering the latest developments on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go