Bridge Mutual is a decentralized, discretionary p2p/p2b insurance platform that provides coverage for stablecoins, centralized exchanges, and smart contracts. Its platform allows users to provide insurance coverage, decide on insurance payouts, as well as get compensated for taking part in the ecosystem.
As cryptocurrency becomes mainstream, individuals and institutions need assurances that their investment of value into this new technology are protected.
Smart contracts are susceptible to hackers (e.g., the DAO hack), exchanges are vulnerable to attacks (e.g., the KuCoin hack), and stablecoins can crash (e.g., the NuBits crash, DAI liquidity crisis). In order to increase adoption of cryptocurrencies on an institutional scale, confidence in these systems must be increased. Bridge solves this problem in a way that is economically viable long-term, transparent, profitable, decentralized, and scalable.
In addition, Bridge has the potential to be disruptive to the traditional insurance industry. Today’s mainstream insurance model hasn’t taken advantage of new technology and is ripe for disruption. Instead of continuing with the litigious, opaque, adversarial and bloated model of traditional insurance, Bridge intends to revolutionize insurance by making the process fair, transparent and efficient using blockchain technology to better align the incentives of both sides of a claim.
The Bridge platform is governed by its token-holders. The public can submit changes to our code and vote on those changes using BMI tokens. One vote per token. At launch, all of the metrics and variables will be set by the Bridge team; however, all of this can be changed via the governing process.
Users can purchase insurance by choosing an asset and setting the number of days and amount of coverage desired; in response, the system will automatically generate a quote using a Dynamic Pricing Model that considers various risk factors of each asset. The quoted fee is called the “premium”, and it can be paid for using BMI, USDT, DOT or ETH.
At launch, Bridge will provide three types of coverage: Smart contract coverage; exchange coverage; and stablecoin coverage. Bridge is the first platform to provide stablecoin coverage that protects users from price crashes.
Our team is always thinking of ways to widen the variety of coverage products, and will continue to innovate. Behind the scenes, we are also looking at ways of introducing more traditional coverage to the blockchain.
Claims, along with accompanying information and evidence, can be easily submitted on the Bridge platform at www.bridgemutua.io.
Claims are handled differently based on the type of coverage being claimed:
Stablecoin claims are automatically and immediatelly settled; one may only make a stablecoin claim if pre-existing conditions are met (the price has crashed for a set duration of time).
Smart contract and exchange coverage goes through our multi-phase voting system. The time it takes for a claim to be adjudicated and settled depends on the type of coverage, with exchange coverage taking the longest.
There are multiple incentive and punishment measures in place within our multi-phase voting system that encourage users to vote fairly and honestly by aligning their incentives with the claimant. Only users that vote in the majority are rewarded with BMI for voting. Users that vote in the minority can be punished by having some of their stake taken away and given to the majority. Users that vote in the minority when there is a large discrepancy (for example, 95% of voters approve a claim while only 5% of voters deny the claim) will have a larger portion of their stake burned than when there is a small discrepancy (for example, 60% of voters approve a claim and 40% of voters deny a claim). For close votes (for example, 55% to 45%), the minority will not be punished.
Furthermore, if a claim is denied and the claimant appeals, the vote will be handled by “Trusted Voters”.
Interacting on the Ethereum network incurs gas fees that are too unpredictable. In recent history, gas fees have gone as high as 15 USDT per transaction. Bridge’s governance and claims voting system rely on interactions within the blockchain, and it would be detrimental to the Bridge platform if user participation was this expensive. We chose Polkadot so that users of the platform will always be incentivized to participate.
Anyone and everyone. Bridge is not blacklisting any countries from its platform.
No. Bridge is non-custodial. The Bridge team does not have access to, or control over, any of its user’s funds or the fund pools that are used to provide coverage to policy holders. A portion of the money within Bridge’s coverage pools are reinvested to produce a yield for its users, however, this money is invested automatically on-chain and never under the direct control of the Bridge team. For these reasons and more, we are of the opinion that the Bridge team is not required to collect Know Your Customer information from those that wish to use its decentralized platform.
By providing coverage for an asset, the user is putting their BMI at stake, meaning they can lose some or all of the BMI they have locked in the platform in the event that a coverable claim is submitted and approved. In exchange for this risk, users acquire two things: 1) a constant yield derived from the reinvestment of coverage funds; and 2) profit made by premiums when users purchase coverage for that asset. Ideally, users would provide coverage for assets they believe are safe in order to minimize the risk of losing their BMI while benefiting from yields and profit sharing interest.
Talk to us on Telegram (t.me/bridge_mutual) and follow us on Twitter (twitter.com/bridge_mutual).
There are three primary ways:
1.) Providing coverage in stablecoins to be used as insurance.
2.) Staking BMI.
3.) Voting honestly on claims.
No, you have full control over the capital provided to the network at any point of time. Nobody on the Bridge team has the ability to control your funds. There is a delay before you can withdraw your funds, this is to ensure that there is enough coverage in the pool to cover all of the outstanding policies.
No. BMI earned through staking as a reward is unlocked by default.
Our smart contracts are being audited by Consensys Diligence and Zokyo. Audits will be released prior to v 1.0 launch.
Supply and demand; there is no token price equation or price control.
Yes. Uniswap and other exchanges.