Tidal Finance partners with DAFI to Integrate its Synthetic Token Protocol and Implement Risk Coverage Features
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Tidal Finance is excited to announce its partnership with DAFI Protocol. DAFI creates a relationship between blockchain project rewards and token adoption by releasing dTokens tied to projects’ demand . Its mission is to introduce an entirely new inflation model to incentivize every decentralized economy in proportion to its own adoption metrics.
Tidal Finance is making DeFi safer by building a high-yield insurance platform that allows users to buy and sell decentralized insurance coverage for assets and smart contracts across multiple chains.
Through this partnership, Tidal Finance will explore the implementation of its risk coverage solutions to DAFI and integrate DAFI’s synthetic token protocol in its platform.
Synthetic Tokens and Decentralized Insurance
DAFI rewards networks based on their adoption, creating long-term users through synthetics. These synthetics are distributed to users in a reduced quantity initially, to protect the network from hyperinflation. Longer-term users are later rewarded when network demand has grown as well as maintaining scarcity when demand is low.
Tidal Finance makes DeFi safer by providing insurance coverage for assets across chains in custom balanced liquidity pools. Tidal Finance lets users 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). At the same time, liquidity providers can invest in pools that suit their risk/reward ratio.
This will be a mutually beneficial partnership for both ecosystems, as Tidal Finance offers its decentralized insurance coverage to DAFI and its related synthetic networks. This will safeguard the platform from any kind of malicious actions or hacking, and act as a failsafe mechanism by fully covering the loss of any assets or value for a small fee.
On the other hand, DAFI will integrate its synthetic token protocol into the Tidal ecosystem. Through this, Tidal could create its own flavor of synthetic dTokens that can be used to reward early adopters and encourage users to hodl their tokens. This model could tackle hyperinflation and network adoption at the same time.
Both DAFI and Tidal have committed to synergizing their mutual efforts in order to make DeFi safer and encourage widespread adoption of blockchain.
About DAFI
DAFI uses synthetics pegged to different decentralized networks. Every blockchain, application, and cryptocurrency can create a flavor of a dToken to reward their early users, while still enhancing scarcity when demand is low.
DAFI can reward a network even when demand declines, by issuing synthetics that will reward user’s later — instead of earlier.
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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