DAFI partners with Tidal

Dafi Protocol joins forces with Tidal Finance, the Polkadot-based cross-chain DeFi insurance player to utilize dToken Synthetics

Dafi Protocol is pleased to announce that it is joining forces with Tidal Finance, a cross-chain DeFi insurance protocol to drive increased utility. Tidal Finance is redefining how decentralized insurance works by providing decentralized insurance coverage solutions for assets in a custom balanced liquidity pool. It allows users to seamlessly choose risk pools depending on their risk appetite and a combination of other factors.

Dafi Protocol aims to create an entirely new inflation model addressing issues relating to hyperinflation. In order to do so, it implements synthetic dTokens for every decentralized economy in proportion to its adoption metrics. Dafi primarily aims to bridge the gap between the distribution of blockchain project rewards and token adoption by limiting excess supply and enabling the creation of synthetics in a seamless manner. These synthetics can be employed for reward programs, bounties, staking, and project ecosystem requirements.

Under the purview of this partnership, Dafi Protocol will integrate its synthetic dTokens into Tidal’s ecosystem. In contrast, we will explore Tidal Finances effective risk coverage mechanisms driving increased safety and security to Dafi in a decentralized financial landscape.

Nuances of the Dafi — Tidal Finance Partnership

The partnership between Dafi Protocol and Tidal Finance will witness increased adoption in terms of utility and network adoption. Both Dafi and Tidal Finance will explore synergies in the same capacities to drive increased utility for long-term users.

Insurance is one of the crucial aspects of a dynamic financial landscape. With an increase in the number of DeFi protocols, insurance coverage is a significant aspect for safeguarding crypto assets from malicious threats and hacks. Tidal is the first customizable smart contract insurance cover marketplace powered by the Polkadot platform. Users can pay a small premium to minimize their risk exposure in order to safeguard their assets.

Dafi’s integration into Tidal’s ecosystem will witness creation of long-term users through synthetics. Dafi will enable Tidal Finance to create synthetics that will stimulate token adoption by limiting hyperinflation in the economy.

The mechanism that Dafi employs will allow the distribution of synthetics tokens in a reduced quantity initially, thus making the process rewarding for long-term users and early supporters of Tidal Finance. It addresses the biggest issues of decentralized economies by enhancing scarcity to drive the project’s adoption. This strategic partnership will usher in increased network adoption wherein Tidal can create its own flavour of synthetic dTokens to incentivize users in a prolonged duration.

Chad Liu, Founder of Tidal Finance -

“ The Dafi Protocol employs a unique mechanism from creation of synthetics to reward networks. The creation of network-pegged synthetics addresses issues of hyperinflation without possessing potential harm to the economy of our platform. It allows to incentivize users through token rewards by making it demand-based, thus reducing the token supply and driving long-term participation from users. We are glad to partner with Dafi to provide our users with paramount level of adoption by significantly contributing to the security of the platform through customized smart contract insurance pools”

Zain Rana, Founder of DAFI-

“ Tidal Finance is a major utility platform, and its cross-chain insurance marketplace and competitive insurance premiums are some of the important aspects for mainstream DeFi adoption. Insurance is a crucial phenomena for the DeFi landscape, especially when the economy is transitioning from its nascency to maturity. The use of synthetic dTidal tokens will be extremely useful for their users by controlling hyperinflation and stimulating longer-term adoption. We believe that this cooperation will benefit both of our networks and lay a strong foundation for future collaborations”

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. This approach will change the foundation of all staking, liquidity, and even bounties systems for the whole industry.

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About Tidal

Tidal Finance makes DeFi safer by providing insurance coverage for assets across chains in custom balanced liquidity pools. It is redefining how decentralized insurance works. 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.

Follow Tidal public channels for future updates:

Rewarding users through network adoption — visit www.dafiprotocol.io

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