While the value of stack coins like Tether (USDT) and USD Coin (USDC) is supposed to be tied to another asset like the US dollar, the cryptocurrency industry has been concerned about the possibility of a large deposit for years – especially in the middle. From the United States, the rule relates to Tether. The current market value of more than 63 billion dollars.
One company now intends to provide investors with discretionary coverage of this scenario – and Tether itself supports the game.
Bridge Mutual seeks to reduce the risk of losing funds as a result of hacking or using smart contracts, exchange hacking or theft, depreciation of hoard coins and other vulnerabilities in digital assets.
Securing Stablecoin is not difficult in principle. If the stack coin falls under the stick for a certain period of time, the policyholder can file a claim. Oracles checks the current price of the stablecoin and then pays the investor the full difference between the current price and the stablecoin, but in a different stablecoin.
Related Topics: How Stack Coins Remain Stable, Explained.
“Smart contract vulnerabilities have become a major threat to decentralized finance, and are the main reason why millions of dollars are wasted in consumables,” said Paolo Arduino, chief technology officer of Tether. “With the introduction of Bridge Mutual, we hope to protect ourselves from future hacks and build trust in DeFi products.”
As Bridge Mutual moves towards a decentralized governance model, Tether is quick to show financial support. The Stablecoin issuer has allocated $500,000 to purchase tokens such as Bitfinex, a cryptocurrency exchange closely associated with Tether Limited through its ownership. These tokens should ensure that both companies have a stake in the management of Bridge Mutual.
Mike Miglio, founder of Bridge Mutual, explained, “Tether and Bitfinex have already been very supportive of the project, connecting us to many other reputable projects that are now our partners, and are also committed to helping us market. Bridge Mutual, improving the design and integrating it with platforms and platforms other.”
Miglio said that insurers put their bonds into pools to use as collateral, and in exchange for their shares, they could also share in the platform’s earnings and make profits.
“Billions of dollars are transferred daily to and from the coin pile, as people and institutions unconditionally believe that the value of the coin pile will remain stable,” Miglio continued. “If the Stack Coin Coverage is readily available and easy to use, everyone can increase their presence in the cryptocurrency market without losing their sleep over whether the entire value they parked in the stables can drop to zero overnight.”