Tidal Finance v2: Ushering in a New Era of Custom Insurance Pools for Our Community

Tidal Finance
Tidal Finance
Published in
3 min readJul 18, 2023

Hey there Tidal community! We’re incredibly excited to share with you a milestone that our team has been working to achieve — the launch of Tidal Finance v2!

Tidal Finance v2 brings exciting new capabilities that set it apart from our previous offering. At the forefront, users will now have access to more customized insurance policies tailored to their needs by independent underwriters who can leverage domain expertise.

Collateral providers also benefit from segregated pools per underwriter, allowing them to allocate liquidity in a targeted way based on policies while minimizing risk exposure. The introduction of dedicated governance committees for each pool enhances decentralization and enables nuanced policy change decisions. Together these improvements unlock greater customization, security, and collective governance for our users — demonstrating our commitment to continually evolving our platform.

We’re thrilled to share that BlockSec, a leading security auditing firm, has launched an insurance pool on Tidal v2 offering coverage against losses from major DeFi protocols. To start, they are providing protection for assets deposited on Compound v3 and AAVE v3 at the lowest rates available — leveraging BlockSec’s deep expertise in evaluating smart contract risks. This gives users peace of mind knowing their funds are secured by a reputable auditing firm. Going forward, we look forward to BlockSec utilizing their capabilities to create new insurance policies that address emerging needs in the rapidly evolving DeFi space. Our collaboration signifies the immense potential of custom pools to deliver specialized protection backed by domain experts.

The potential for tailored policies on Tidal v2 extends far beyond what’s currently available. We have more underwriting partners in the pipeline planning to launch pools covering a diverse range of risks, including slashing protection, swap price protection, stablecoin de-pegging, and credit defaults. The possibilities are truly endless now that underwriters can design policies based on their capabilities and risk appetites. No longer confined to a one-size-fits-all model, underwriters will soon offer niche protections like exchange hacking insurance, leveraged yield coverage, and more. We’re excited to see the next wave of innovative policies that our underwriting partners create to make DeFi participation safer and more resilient.

Tidal Finance v2 also provides future growth through its flexible architecture supporting add-on modules. Beyond the initial launch, we envision Tidal v2 evolving into a one-stop shop for blockchain insurance underwriting. Additional modules like automated policy pricing, streamlined claims processing, and data analytics will further enable underwriters to efficiently operate on our platform.

Tidal v2 also establishes dedicated governance committees for each insurance pool. These committees actively vote on claims and policy changes to safeguard ecosystem integrity. Their oversight ensures thorough claim evaluations and protection against malicious activity. By empowering stakeholders to govern their pools, Tidal v2 promotes decentralization, fairness and transparency. The committees serve as guardians, upholding the interests of their pool members and the wider Tidal community.

At Tidal Finance, our mission has always been to build an insurance ecosystem that integrates traditional models and DeFi. The launch of v2 marks tremendous progress toward this vision. This milestone would not have been possible without the passion and support of our amazing community. Thank you for believing in us; we are so excited to continue this journey with you. Together, let’s make DeFi more accessible, safe and resilient for all. Onward!


The Tidal Finance Team


Tidal Finance is a decentralized insurance protocol that provides coverage for digital assets on various blockchain networks. The platform adds a wider range of coverage options to the present Web3 insurance ecosystem by enabling insurers and underwriters to design unique insurance policies with independent collateral pools. It is also the first insurance protocol launched on Polygon zkEVM.



Tidal Finance
Tidal Finance

Tidal Finance is the first flexible DeFi insurance platform and marketplace offering the highest APYs in the industry. https://tidal.finance/