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Introducing Opium Insurance

Decentralised, tokenized and extremely flexible

The problem it solves

Faced with such irreconcilable risks, even the shrewdest strategy is doomed to failure, transforming the serious act of trading into little more than a casino game. That’s why we developed a tool that comes specifically to the aid of DeFi traders, allowing them to hedge the risks that exist in this pioneering market.

“Be like a hedge fund — only take risks you are willing to take, hedge the rest!”,

-Andrey, founder of Opium.

Opium Insurance at a glance

How Opium Insurance is different

What you can do with Opium Insurance:

  1. Opium Insurance is tradable: you can buy it or sell it as the need arises.
  2. You can choose from different types of insurance: from insurance against smart-contract hacking to insurance against stablecoin default.
  3. You can decide to take some risks/stake money into the pools and earn extra returns.

“Hedge funds hedge funds — hence the name.”

— Andrey, Opium

We’ll be launching the product itself soon. For now, though, we want to tell you more about how Opium Insurance will help you.

Use cases

But if something happens, and the USDT drops to less than a dollar, no matter how successful your strategy is, you will lose the value stored in your USDT tokens. That’s the inconvenient truth.

With Opium Insurance, you are buying protection against eventualities like these, and the market will determine the price you pay.

Opium Insurance allows you to sleep well, safe in the knowledge that your incomes are protected.”

Which would you choose: A 9% return, knowing you risk losing everything at any moment, or a stable 7% return — guaranteed by “sacrificing” 2% to cover your insurance and your peace of mind?

But that’s not all; it gets even better: you can potentially stake your quality tokens as aToken, yTokens, etc. to guarantee the return and thereby double earn! In this case, your risk/return will also be lower because your portfolio is more diversified.

Under the hood: how it works

Yet more good news: with Opium, our users always have an order book logic underneath the products, but as this kind of structure is familiar to most DeFi users, we decided to simplify the use of Opium for you.

Insurance buyers select an insurance product, pay a premium to the pool and receive a tokenized insurance position. This position can be traded on secondary markets and can be used to claim a payout in the case of successful insurance claims.

Opium is a non-custodial protocol; it does not sell you insurance. The insurance is sold to you by other users who are willing to take the risk. It is guaranteed by the full collateral locked in smart contracts!

Insurance sellers stake their capital in an insurance pool and receive a liquidity provider token. They earn income on their deposit because the premium paid by buyers is added to the pool.

Spoiler: you can stake your tokens to participate in liquidity mining of $OPIUM

Try out Opium Insurance today!

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