Tidal Finance partners with Polygon to offer Insurance Coverage to its Ecosystem

Tidal Finance is excited to announce its partnership with Polygon (formerly Matic Network). Polygon is a Layer 2 scaling solution backed by Binance and Coinbase. Polygon brings massive scale to Ethereum using an adapted version of Plasma with PoS based side chains. Polygon seeks to stimulate mass adoption of cryptocurrencies by resolving the problems of scalability on many blockchains.

Tidal Finance is making DeFi safer by building the first customizable smart contract cover marketplace powered by the Polkadot platform.

Through this collaboration, Tidal Finance will offer a new layer of security to the Matic Network (Polygon). Polygon will thus be able to sufficiently protect the assets in its ecosystem through mutual cover pools. Polygon in turn will help Tidal users save gas fees on transactions.

Polygon will help reduce Gas fees for Tidal Finance users

With Tidal, users can choose risk pools depending on their risk appetite, and filter it through a combination of protocols/assets and their coverage terms (premium, cover period, etc). Liquidity Providers, on the other hand, can invest in pools that suit their risk/reward ratio.

Polygon effectively transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche, etc. with the advantages of Ethereum’s security, vibrant ecosystem, and openness

DeFi platforms though suffer from malicious hacks and usually have easy attack vectors, putting the network assets at risk. However, with sufficient mutual pool coverage, Tidal could act as a fail-safe mechanism. This, in turn, could maximize the capital efficiency of Polygon’s treasury funds, and attract more liquidity into the DeFi platform.

Diving into the nuances of the partnership, Sandeep Nailwal, Co-founder at Matic Network said,

Polygon and Tidal share the same mission of driving DeFi adoption. Both scalability and insurance are significant factors that need to be levelled up to fuel mainstream DeFi adoption. Polygon’s synergizing with Tidal Finance will help in accelerating the DeFi landscape with robust and smart solutions.

This partnership will also be mutually beneficial to Tidal Finance since Polygon’s integration will help the platform reduce the expensive gas fees which are commonplace in the Ethereum blockchain. This will make Tidal Finance more cost-efficient for our users, and in turn, spurring adoption.

Chad Liu, Co-founder at Tidal Finance said,

We are happy to provide insurance functionalities to Polygon’s ecosystem. Addressing the vulnerability factor is significant in the dynamic DeFi space. This collaboration with Polygon will serve as a foundation for future integrations.

One of the salient features of this collaboration will be the value proposition of adding Polygon and its native tokens MATIC into the Tidal risk pool. This will enable Tidal Liquidity Providers to earn additional returns by providing insurance for it. As more protocols are added to the Tidal risk pools, LPs will have more options to deploy their capital.

About Polygon

Polygon (previously Matic Network) is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.

About Tidal Finance

Tidal Finance makes DeFi safer by providing insurance coverage for assets across chains in custom balanced liquidity pools. TIDAL is a Balancer-like insurance market built upon Polkadot that allows users to create custom insurance pools for one or more assets.

With Tidal, users can choose risk pools depending on their risk appetite, and filter it through a combination of protocols/assets and their coverage terms (premium, cover period, etc). Liquidity Providers, on the other hand, can invest in pools that suit their risk/reward ratio.

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