Anyone who has been following the blockchain’s trajectory for some time knows that this market has its risks, more specifically when you remember about a certain thing called “DAO-hack”, among other nightmares for DeFi users. Opyn brings up a new platform to protect against both technical and economic risks within the DeFi protocols.
How Does Opyn Work?
This short video explains how does Opyn work!
Using Compound insurance to start the process, the platform allows Ethereum DeFi users to guarantee their compound interest earnings easily, in a friendly and secure ecosystem. The system makes life easier for users: by accessing opyn.co, the individual is connected to the Convexity Protocol, which is nothing more than a series of smart contracts built on Ethereum. The platform is a two-sided marketplace that uses ERC-20 put options, known as oTokens.
Can I Trust Opyn?
According to the team behind the project, security is the number one priority of the project. Opyn is audited by OpenZeppelin, which is nothing less than the most important standard for secure blockchain applications. Also, the transparent relationship with DeFi community shows a real interest in solving a real problem and creating value for users.
Why Is It Interesting For DeFi Users?
It is nothing new that the ongoing expansion of the DeFi use has brought enormous advantages for those who believe in the maturity of blockchain technology and its philosophy of use. The expansion can bring several risks to users’ assets, as the value of DeFi protocols increases the interest of some hackers to steal them even more. Opyn, which comes with a DeFi insurance proposal like Nexus Mutual, protects earnings both technically and financially.
Further reading: Nexus Mutual – Intelligent Solution For Blockchain Insurance
Are There Any Extra Advantages In Using Opyn?
Opyn allows option writers to get premiums for selling insurance coverage directly to users, showing the platform’s interest in creating a writer-user relationship by creating a kind of commission system. Due to its incentive-compatible platform, Opyn does not rely on claim assessors or risk assessors, a factor that makes the proposal even more reliable and independent.
What Is The General Impact Of The New Platform?
Considering that until today only Nexus Mutual operated in this field of DeFi insurance, Opyn brings a series of strategic advantages to the market. First, competition stimulates efficiency, making services provided within the DeFi market much more interesting. This directly contributes to the maturing of DeFi as a secure financial system.
Further reading: Band Protocol: Upgraded Data Governance Framework
In Which Scenario Opyn Starts Its Operations?
Those who believe and already have some practical experience with blockchain know that this market can be defined in one word: bearish. Despite the meteoric growth since the mid-2000s, there is no denying the many risks associated with DeFi, which are sometimes not even known by most users. It is practically inevitable that in the coming years, a hack attack like happened in 2016 will happen at any time, which makes Opyn’s proposal even more urgent.
Entering to cover an existing lack in the world of DeFi investments, Opyn offers an independent and innovative platform that promises to aid users to protect their “pot o’gold”. It is the first platform of its kind that protects against both technical and financial risks, using Compound deposit insurance.
Using the technology of Convexity Protocol (smart contracts based on Ethereum), it is nothing more than a two-sided marketplace that was designed for tokenized ERC-20 put options (oTokens).
If Opyn proves in the long term to be a protection system validated by users, it will be the great platform of prominence in terms of DeFi insurance.