Polkadot-based decentralized insurance project Tidal Finance raises $1.8 million in a token sale

Quick Take

  • Polkadot-based decentralized insurance project Tidal Finance has raised $1.8 million in a private token sale.
  • With fresh capital at hand, Tidal looks to launch its protocol in mid-April, co-founder and CEO Chad Liu told The Block.

Tidal Finance, the yet-to-launch Polkadot-based decentralized insurance protocol, has raised $1.8 million in a private token sale round.

The round was backed by Hypersphere Ventures, the venture firm co-founded by Polkadot co-founder Robert Habermeier, as well as Spartan Capital, Kenetic Capital, and QCP Capital.

With fresh capital at hand, Tidal looks to launch its protocol in mid-April, co-founder and CEO Chad Liu told The Block. Tidal has been under development since last September and will launch the testnet in about two weeks, said Liu.

When launched publicly, Tidal will help users buy and sell insurance against decentralized finance (DeFi) protocols. The buying part is self-explanatory. As for sellers, they will have to provide liquidity for DeFi protocols they want to back and get Tidal (TIL) tokens in return.

Tidal will charge a "small percentage of transaction fee" from cover sellers, said Liu, commenting on the protocol's business model.

Nexus Mutual and Cover Protocol are two existing Ethereum-based DeFi insurance protocols. When asked what Tidal's competitive edge is, Liu said it is designed to increase capital efficiency at reduced risks.

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