On August 4, 2022, Bridge Mutual announced that it was collaborating with Lido Finance to offer insurance for Lido’s staked ETH (stETH). Lido Finance is an industry leader in liquid staking. It has prioritized ecosystem improvement, increased decentralization, and making staking widely available.
Why This Matters
This new team-up will allow a DeFi insurance product to be used to protect Ethereum stakers from future hacks and other technical issues. The partnership will give Lido’s user base several additional layers of security that include:
History of Lido
Lido launched in December 2020. Since its launch, it has focused on simplifying the Ethereum staking experience. Its goal is to eliminate the barriers to ETH staking, thus democratizing the process. Lido recently unveiled plans for Lido on L2, which will begin with the expansion of stETH across the L2 DeFi ecosystem. With current plans to scale Ethereum unveiled, Lido is planning to follow suit.
For stETH stakers, it will mean lower fees and access to new DeFi applications, which will boost yields. As it develops, Lido is committed to ensuring that its staked-asset tokens are secure and widely accessible across the Ethereum Layer 2 ecosystem.
Since its launch, Lido has become a leader in liquid staking by TVL. It prioritizes improvement of the ecosystem, increased decentralization, and ensures the benefits of staking reach the masses on every chain where it is available.
Securing the DeFi Ecosystem
The DeFi market has experienced massive growth and maturity. This growth has also attracted hackers who seek to steal investments and assets. In response, Bridge Mutual has developed a Lido Finance coverage pool on the BMI platform. Bridge and Lido are committed to promoting the mass adoption of DeFi. With their partnership, BMI will help reduce vulnerability by offering protection against potential attacks and exploits, which have become ubiquitous in the DeFi space.
Bridge Mutual is the perfect partner to secure the DeFi sector. It was designed as a decentralized coverage platform whose mission is to be the leading crypto armorer of DeFi. Bridge Mutual aims to provide everyone with protection from universal crypto threats.
The focus of Bridge Mutual is to offer a great product, pro-community objective, and synergy with other Web3 innovations. It operates as a decentralized, P2P/P2B discretionary risk platform. It covers everything in the DeFi space, including smart contracts, centralized exchanges (CEX), and stablecoins. With Bridge Mutual, users have access to flexible coverage. They can decide on policy payouts, share profits, and receive compensation for adjudicating claims. Users can receive protection and provide it in exchange for yield.
What s the Future of DeFi Insurance?
While insurance is not an exciting part of the cryptocurrency sector, it is an important piece that is missing from most of the DeFi world. The lack of widespread liquid insurance markets is holding back the growth and maturity of the DeFi sector by preventing more capital from participating. As DeFi insurance products like the one offered by Bridge Mutual spread, it will make it more appealing for capital to enter the space.