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GAINS Associates

Tidal Finance — Telegram AMA — August 14

On Saturday, August 14, we had the pleasure to welcome to our Telegram chat:

Chad Liu, Co-Founder.

We asked him questions about the development of Tidal Finance.

Some sentences have been slightly edited for readability but the meaning has been conserved.


Tidal is an insurance marketplace that connects insurance sellers and buyers to cover smart contract hacks. Tidal offers the functionality to create custom insurance plans for one or more assets from multiple protocols. Tidal aims to maximize capital efficiency and return to attract reserve providers while offering competitive insurance premiums to attract buyers.

The Tidal protocol is governed by its governance token holders. Token holders can vote on these proposals in the normal DAO process using TIDAL tokens. Tidal is non-custodial and doesn’t require KYC.

Tidal has partnered with Polygon. Tidal Finance will offer a new layer of security to the Polygon. Polygon will be able to sufficiently protect the assets in its ecosystem through mutual cover pools. Polygon in turn will help Tidal users save gas fees on transactions.


Q — Ayeley from GAINS: Please tell us what you did before discovering crypto and did you have any other previous venture in crypto? What is your role at Tidal Finance?

A — Chad from Tidal Finance: I am a co-founder of Tidal Finance. A bit of background about myself — I have mathematics, engineering, and finance background, before crypto, I worked in the energy industry developing AI solutions. came to crypto space in 2017 while working in VC and fell in love with the space since the amount of creativity and innovation is definitely ahead of other industries. Earlier last year around April, We started this company by realizing the DeFi space has a high demand for insurance services.

About Tidal Finance

Q — Ayeley from GAINS: What is Tidal Finance about in a few simple sentences? And for how long have you been working on the project?

A — Chad from Tidal Finance: Tidal is an insurance marketplace that connects insurance sellers and buyers to cover smart contract hacks. Tidal offers the functionality to create custom insurance plans for one or more assets from multiple protocols. The main objective of the platform is to maximize capital efficiency and return to attract reserve providers, while also offering competitive insurance premiums to attract cover buyers. We started the project about 1 year ago. Launched the mainnet 2 weeks ago and currently running on the Polygon network. There are currently 10 people on the team.

Q — Ayeley from GAINS: What are some other milestones achieved by Tidal Finance so far that you’d like to highlight?

A — Chad from Tidal Finance: Yes. our mainnet launched 2 weeks ago. all 4 of our launching partners got 1 million USD TVL covered and continuing to grow. For reserve providers, the platform is open for users to deposit USDC and earn high yields by providing reserves.

Q — Telegram user _COMBOT _CRYPTO: Can you tell us a bit about Tidal Finance’s School of Fish Staking program? and what are the benefits for users?

A — Chad from Tidal Finance: The staking pool currently earns ~60% APR and is strong support for the USDC reserve pool. We will continue to incentivize this pool to grow. Here are some details on how this pool works.

Q — Telegram user R. Alberto: You said that “Our income model as a platform is to take a transaction fee each week from the coverage premium”, How are these coverage premiums, and how important are they to your income model?

A — Chad from Tidal Finance: Premium is the main source of revenue to make up the platform cost. Currently, the average insurance premium is about 5% of the covered amount. meaning 1 million USD coverage would result in 50k revenue. The platform takes a small percentage of this 50k, and the majority goes to the reserve providers. with total non-covered assets (billions) in the space, we believe there is a lot of potentials.


Q — Ayeley from GAINS: What role does the TIDAL token play in the ecosystem? And how can we get tokens?

A — Chad from Tidal Finance: TIDAL is a governance token, and right now plays a role in claim payouts. With DAO mature over time token holders can vote on different parameter settings on the platform: insured parties to be listed, premium pricing, rewards, collaterals, etc. TIDAL is on Uniswap v2.

Competitive Advantage

Q — Ayeley from GAINS: What sets Tidal Finance apart from other crypto projects also offering insurance?

A — Chad from Tidal Finance: The most unique selling point is that Tidal directly serves the protocol team instead of retail, which greatly increases the efficiency and quality of claims and payout. The pay-as-you-go weekly subscription model allows buyers to adjust their covered amount anytime and never pay more than what’s in their reserve. On the sell-side, we offer customizable plans for reserve providers to pick on their own so that they are not tied to the risk exposure they don’t want. Update or withdrawal takes only 1–2 weeks. We also use the insured party’s token as collateral to further lower sellers’ risk. This is the first use case in the insurance space.

Q — Twitter user @PKragak: Can you detail what features you think Tidal Finance has that make it one of the best DeFi insurance alternatives currently? Insurance premium? Incentives for users to offer liquidity? Security?

A — Chad from Tidal Finance: We directly serve protocol teams, pay-as-you-go subscription weekly model. The purchased amount will automatically adjust with the reserve level so that you never pay more than the actual amount that can be covered. It’s a very easy onboarding and flexible adjustment service for our buyers. For reserve providers, we let them customize their selection to select multiple protocols they want to back up. Earn reward and premium from multiple sources at the same time. To lower reserve providers’ risk, we also use a certain amount of team collateral tokens and TIDAL tokens to compensate reserve providers after a payout.

Business Development

Q — Ayeley from GAINS: What is the future looking like for Tidal Finance? And what should we expect in the next weeks and months?

A — Chad from Tidal Finance: On the buyer side, we are onboarding more partners in the next few weeks, getting their TVL covered through tidal. On the reserve side, we are releasing new features like taking other team tokens as collateral as well as reward. To incentivize and lower the risks of reserve providers.

Q — Twitter user @PKragak: Tidal Finance in one way or another is contributing something to the DeFi community. Is there a possibility that in the future they can influence DeFi in a positive way? Could this influence become really great?

A — Chad from Tidal Finance: Our mission is to help DeFi space getting more covered by TVL. and we are taking a unique approach directly working with the protocol team/treasury. I believe over time, almost all protocol teams should have an insurance treasury to increase their users’ safety.

Q — Twitter user @Debby9900: Do you have any active referral or ambassador program for users that we can attract a new community? What’re the ways that generate income/revenue to maintain your project and what is its revenue model? How can you make it a win-win situation for both investors and developers?

A — Chad from Tidal Finance: We are planning to launch an ambassador program soon. Right now we are in the phase to educate the community on how to use the product. After that, the ambassadors will be chosen from the community. Our revenue model as a platform is to take a transaction fee every week from the coverage premium. Later on, we can add more revenue streams by providing security-related services.

Q — Ayeley from GAINS: Do you have links to the educational platforms you can share?

A — Chad from Tidal Finance: Our Gitbook is a pretty good place to understand how the platform works. We will release some educational videos in the next couple of weeks.

Q — Telegram user 🏅⚡⚡TIK TOK OFFER⚡⚡🏅: How do you plan to get more partnerships or could you plz tell us what partnerships are going to join with this project?

A — Chad from Tidal Finance: We are actively working on business development to get more partnerships. The initial launch validated our business model and market position. We plan to onboard more clients in the coming weeks.

Thanks for coming into our community, Chad, and taking the time to answer our questions. Congratulations again on the mainnet launch. Anything else you’d like to say? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS Associates 🐋

Thank you. Our Telegram group has pretty good support and release announcements frequently. You can also join us on Discord, where we discuss technical questions. — Chad Liu from Tidal Finance

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