Polkamarkets and Bridge Mutual jointly announced a partnership that will allow Polkamarkets’ users to claim decentralized finance (DeFi) risk coverage for their hedge funds.
Said Polkamarkets CEO, Ricardo Marques. “We are excited to be partnering with Bridge Mutual to provide decentralized coverage to Polkamarkets.
“Discretionary risk coverage is a key component to a functioning and efficient capital markets. And we are seeing the rise of decentralized coverage products filling out the growing DeFi landscape.
“Bridge Mutual will enable our users, traders, and liquidity providers to have a fall-back in case anything goes wrong. Just like they do with hundreds of other projects.”
Bridge Mutual CEO Mike Miglio added. “We are excited to offer protection to the crypto community to ease users’ worries about losing their worth in the capital markets.
“Due to Polkamarkets‘ rapid growth, Bridge Mutual wants to ensure the best protection for their users. With that said, we are extremely happy to collaborate with them and ensure maximum value to its users.”
Polkamarkets is a DeFi-Powered Prediction Market built for cross-chain information exchange and trading. Furthermore where users take positions on outcomes of real-world events in a decentralized platform based on Polkadot.
Similarly, Bridge Mutual is a decentralized, P2P/P2B discretionary risk coverage platform that provides coverage for stablecoins, centralized exchanges and smart contracts.
Why DeFi is important
DeFi products are brand new when it comes to capital markets. In traditional financial markets, risk coverage is a major component that allows users to feel safe about taking positions.
Additionally, this creates an entire industry around risk coverage products, leading to the development of some of the largest conglomerates in today’s financial landscape.
As a result, there has been a rise of blockchain-based risk coverage protocols in DeFi. Considering that much of DeFi exists as smart contracts on Ethereum, decentralized risk coverage is needed.
Precisely to mitigate smart contract risks such as unforeseen exploits, bugs and other technical issues that lead to a loss.