Proposal: Allocate $10k USDC to Tidal to purchase $1m of Insurance.

About Tidal

Tidal Finance is a decentralized discretionary mutual cover protocol offering the DeFi community the ability to hedge against failure of any DeFi protocol or asset.


This proposal would allocate bZx $10k in USDC from the treasury fund to purchase $1m worth of insurance from Tidal for their mutual cover pools. Tidal users would provide decentralized insurance to bZx assets.


bZx Protocol will be purchasing $1 million USD-worth coverage through Tidal Finance to cover their protocol’s safety. In case of a payout event, the coverage amount will be directly paid to the bZx team to facilitate a speed recovery of their users fund.

The insurance policy would cover any losses arising out of bZx smart contract vulnerabilities that are deployed on the Ethereum network. Malicious attacks and economic exploits resulting in bZx users’ asset loss would qualify for a valid claim. Any valid payout amount will be directly paid to the bZx team to recover bZx users’ loss. For more general coverage policy wording, please refer to Tidal’s gitbook cover policy section.

The $10k USDC in this proposal would pay the weekly premiums on $1m worth of insurance from Tidal for their mutual cover pools. This would pay the insurance premiums on Tidal for a period of 6 months at a cost of roughly $384 every week

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I support this proposal.

To clarify, DAO funds are held in BZRX, so 10k USDC would be purchased from these funds.


Let me just say right of the bat that you have a terrible choice for a username “bzxcommunity”, it makes me wonder if you’re actually a community member at all, seeing you only joined 1 hour ago.

Having said that, it’s not such a bad idea overall. Couple of starting questions:

How is the 1 million usd coverage guaranteed?

Can you pay out to the bzx treasury instead of the team, since bZx Ltd has dissolved, and all the teammembers are now community members, or would that conflict with the cover policy?

In what (stable)coin is the coverage held?

What’s your tg/discord name, how can we contact you?

I think this is a great proposal and generally support it, subject to answers to Audax’s questions.

i also want to know how the coverage is guaranteed. if this question can be answered in detail. i would definitly say: YES

Hello audax,

I can help you address some questions related with tidal.

On tidal platform, the usd reserve is updated on a weekly basis, as long as there is over 1 million usd reserve deposited for bZx there is guaranteed coverage for 1 million usd. If the reserve falls short below 1 million usd, the coverage amount will be automatically adjusted to the max level of reserve, the weekly cost will be reduced accordingly to the reserve level as well. The system automatically balance between the reserve and purchase amount and you don’t pay more than what’s covered.

Payout can be made to bZx treasury as well, as long as the party can correctly handle the fund to recover their users’ loss. We will also have security audit partners to analyze the hack.

The coverage is held by stable coin USDC.

My tg handle is @chadliu638, discord Chad#9296. You can reach me for any tidal related question.
As an insurance platform, we are bringing a new insurance solution directly to protocol teams with a weekly pay-as-you-go model. We also help our partners to bootstrap reserve by rewarding TIDAL tokens to reserve providers. In less than 1 week we have helped bZx team bootstrap over 900k USDC reserve.

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happy to answer any questions. please see the reply I sent to audax

Hi Chad,

Nice to have you here on the forum answering questions, appreciate it! I’ve read up on Tidal and it looks like you can really help us (and others) in the space to bootstrap insurance, so thank you for your answers.

To the community:

We (the community) would have to make some things clear, as there are currently 3 chains with each their own governance token and 2 of them have a treasury. There’s also a bZx insurance fund that all 3 of them are contributing to.

In my opinion, since all 3 are contributing to the same bZx insurance fund, it would be logical to continue the cooperation and have them all insured at the same time with Tidal (if fulcrum on one chain gets exploited, the same is very likely happening on all the chains like with the recent Polynetwork exploit).

The payment should not come from bZx treasury, nor from pgov treasury, and bgov doesn’t even have a treasury.

What I’m proposing is to have the insurance fee to be paid from the “cooperative” bZx insurance fund. BGOV and PGOV both have been paying their share into this fund since their launch, and although it’s not perfect, I think a majority will approve of this solution to have all 3 chains extra insured by Tidal.

Let me know what you guys think!

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I support this proposal. the ability to essentially leverage the insurance fund for coverage is very beneficial instead of having to build the insurance fund over time.

Hi Audax,

Thank you for the update. Just to comment on the multiple chain topic - yes, the policy can cover fulcrum on multiple chains, espeically with the example you gave that they have the same vulnerability.

1 Like

I am in support for this proposal as well

Snapshot vote is up at

Just to be clear, this is a vote done by bzrx holders. They pay the insurance from the BZRX treasury, but the whole bZx protocol is insured, so also the other chains.

Although all 3 chains will be insured, in the case of a potential hack/exploit and therefore a 1 mln USD payout, the bzrx holders will decide how the payout will be spent.

Just as an extreme example: in case only the platform on BSC gets exploited, there will ONLY be a payout to the bzrx treasury. Next, the bzrx holders can vote what to do with the 1 mln usd… of course they could use it to compensate the losses of our brothers on the BSC chain, but because I said in the beginning: this was an extreme example, they could also decide to simply keep the 1 mln USD in their bzrx treasury and spend it on a night out in Vegas full of beanies (unless this would conflict the t&c from

In short:

They pay, they decide.

PGOV/BGOV holders that would like to have their own insurance, can contract a similar insurance if they wish to do so.