DeFi Base Camp: Bright Union Thesis
For the last century, the insurance industry has continued to grow significantly. The reason why is simple: the majority of individuals and businesses will always need protection from unforeseen risks.
We know, as highlighted above, that new insurance offerings correlate with technological developments and disasters. We also know that DeFi is experimental tech. Constant developments and unfortunate disasters are eminent. So, why is covering risk not mainstream in our industry? In 2022 alone, there’s been > $40B in losses due to exploits. Yet, only a tiny percentage of capital in DeFi has been insured.
We believe that this lack of coverage is due to scalability challenges and poor user experience. If DeFi insurance providers were able to offer direct protocol integrations and scale underwriting capability, it would speed up mass adoption of this vital risk mitigation mechanism.
Intro to Bright Union
Bright Union, a DeFi insurance aggregator accelerated by DeFi Base Camp, is the missing puzzle piece for insurance in DeFi. The protocol provides an easy-to-integrate SDK for DeFi protocols, a marketplace for insurance coverages, and an index pool for liquidity provision.
Before Bright Union, there was little to no opportunity for projects to directly integrate with insurance providers in DeFi. By integrating Bright Union, a protocol’s users will be able to execute a one-click search amongst all available coverages and purchase insurance without leaving the UI. This significantly improves user experience, increases efficiency, and could lower the cost of insurance coverages over time.
Bright Union also addresses the supply side (underwriting) of DeFi Insurance. Using the Bright Risk Index, anyone can provide liquidity to underwrite the coverages on a collection of insurance protocols. The underwriters will gain a yield proportional to the capital contributed, and of course redeem its contribution on a term of their choice.
We are excited to participate in Bright Union’s fundraising efforts as they build an all-encompassing protocol that caters to all three actors in DeFi insurance: protocols, users, and underwriters.
If you’re a DeFi protocol and want to explore partnering with Bright Union, please reach out to info@brightunion.io.
If you’re an early stage start-up and want to explore incubation/acceleration, reach out to our Venture Manager at amber@neworder.network.
