By
Chainwire
March 26th, 2024
While Bridge Mutual is relatively young, its offerings are game-changing as it seeks to bring the profits of mainstream insurance businesses to the lovers of blockchain and decentralized finance innovations.
Discretionary digital assets coverage platform Bridge Mutual is redefining blockchain-based insurance provision as it launched its native token dubbed the BMI Token on Polkastarter. According to a press release shared with Coinspeaker, the BMI Tokens were made available on the decentralized exchange platform for cross-chain token pools and auctions through an Initial Decentralized Offering (IDO) that was started back on Saturday, the 30th of January.
Bridge Mutual’s digital assets coverage product was born out of the aim to shield cryptocurrency investors and users alike from smart contract bugs, exchange hacks, losses brought about by the dip in the price of stablecoins over time, and many more. The BMI Tokens are aimed at facilitating transactions on the platform with additional perks to the holders to join in the governance of the system in a more decentralized manner.
“Even the most sophisticated digital asset investors are at risk of losing their funds through various malicious and negligent activities in the blockchain ecosystem. With Bridge Mutual, we believe it doesn’t have to be this way. Using Bridge, people can control the risk exposure of their digital asset investments, just as they do with real-world assets,” said Michael Miglio, CEO of Bridge Mutual. “The Bridge Mutual platform allows people to offer and purchase coverage in a decentralized p2p way. We’re excited to kickstart the launch of the BMI ecosystem with a launch on Polkastarter and creating a better way of protecting digital assets for users all over the globe.”
While Bridge Mutual is relatively young (founded in 2020), its offerings are game-changing as it seeks to bring the profits of mainstream insurance businesses to the lovers of blockchain and decentralized finance innovations. The platform’s CEO Michael Miglio is a finance professional who leads a team of coders, insurance, and law professionals, amongst others to bring the project live.
How Bridge Mutual (BMI) Works
Per the press release, any user can acquire or provide cover for smart contracts, stablecoins, or exchanges. Users who intend to provide coverage for any asset will select the coin, exchange, or project they are interested in and deposit stablecoins in the project’s pool. These deposited funds will earn the user some profits (stablecoins and BMI Tokens) through investments made by Bridge Mutual into yield generating schemes as well as profit sharing when any other user purchase coverage for the same assets the funds were deposited for.
The release reads, “users can quickly purchase Aave coverage using the Bridge Mutual app, and easily file a claim in the event that Aave were to be hacked or exploited.” The percentage payment rate for the coverage is competitive and every user gets to vote through the BMI Tokens at each coverage request to determine its eligibility. The only exception to these are claims for stablecoins which are payable as confirmed by the accuracy of Bridge Mutual’s smart contract built to track the tokens price changes over time.