Polkamarkets Partners with Bridge Mutual for Decentralised Risk Coverage
We are thrilled to announce Polkamarkets’ partnership with Bridge Mutual to provide decentralized risk coverage to prediction markets on Polkamarkets. Integration with Bridge Mutual will allow users on Polkamarkets to either provide or claim risk coverage, in a completely open and decentralised manner.
The Need for Decentralised Coverage
Decentralised finance products are a brand new frontier when it comes to capital markets. In traditional financial markets, risk coverage is a major component that not only allows users to feel safe about taking positions but also acts as a revenue stream for the risk coverage providers. This actually creates an entire industry around risk coverage products, leading to the creation of some of the largest conglomerates in today’s financial landscape.
In DeFi, we are seeing the rise of blockchain-based risk coverage protocols fill the role that brick and mortar companies fill in traditional finance. These DeFi risk coverage products, like Bridge Mutual, enable users to cover positions and hedge against risk in the DeFi space. Considering that much of DeFi exists as smart contracts on Ethereum, decentralised risk coverage is needed precisely to mitigate smart contract risks such as unforeseen exploits, bugs, and other technical issues that lead to a loss.
Polkamarkets & Bridge Mutual
The application of decentralized coverage to prediction markets is actually a great use-case for these types of DeFi risk coverage products. Bridge Mutual can be used to cover the entire Polkamarkets platform from systemic risk, as well as for categories of prediction markets coverage (for example, Esports, crypto-prices, Politics) and even more granularly down to individual prediction markets.
Let’s take the example of crypto-price markets coverage. Users on Bridge Mutual can provide risk coverage against price feed / oracle risk on Polkamarkets’ crypto price prediction markets. As long as the crypto-price feeds from our oracles are working as intended, the Bridge Mutual coverage providers earn a return. But in the unlikely scenario that one of our oracles fails or is compromised, and the crypto-price used to resolve a market is actually wrong, then the losses to our users would then be recoupable from Bridge Mutual’s coverage providers. The same can be said for Esports and Sports markets, as well as politics markets. The entire Polkamarkets platform can even be covered from a systemic perspective.
“We are excited to be partnering with Bridge Mutual to provide decentralised coverage to Polkamarkets. Risk coverage is a key component to a functioning and efficient capital markets, and we are seeing the rise of decentralized risk 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.” — Ricardo Marques, Co-Founder of Polkamarkets.
“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 Polkamarkets, and ensure maximum value to its users.” — Mike Miglio, Bridge Mutual CEO.
About Bridge Mutual
Bridge Mutual is a decentralized, p2p/p2b discretionary risk coverage platform that provides coverage for stablecoins, centralized exchanges, and smart contracts. Its platform allows users to provide coverage, decide on policy payouts, as well as share profit, and get compensated for adjudicating claims. Bridge Mutual is planning to launch its platform at the end of March.
Polkamarkets is an Autonomous Prediction Market Protocol built for cross-chain information exchange and trading where users take positions on outcomes of real-world events–in a decentralized and interoperable platform based on Polkadot.