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