TIDAL

Tidal Finance

TIDAL is an insurance market built upon Polkadot that allows users to create custom insurance pools for one or more assets.

Description

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

Tidal will charge a small percentage of transaction fees from cover sellers. Tidal combines different protocols into coverage pools to allow liquidity providers (LPs) to stake their capital to provide coverage on multiple protocols at the same time. These pools are assembled to offer LPs the ability to leverage their capital while mitigating the risks. Risks are reduced by combining protocols with low correlation and by limiting the duration of each coverage cycle. This approach provides LPs the ability to generate above-average returns while offering coverage seekers highly competitive pricing.

Tidal has said it has partnered with over 20 DeFi protocols to bring coverage for its users. Some of these protocols include bZx, Reef Finance, Equilibrium, StakeDAO, and others.

Tidal also plans to launch an insurance product for different proof-of-stake protocols, including Ethereum 2.0.

Tidal Finance recently raised $1.95 million in a private token sale round 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.

Tidal is looking to launch its protocol in mid-April.

Team

The Tidal project team is both accomplished and experienced. As you will see from their LinkedIn profiles this is the perfect team to be leading a project of this quality.

Our Opinion

Tidal was our top pick from all the players currently operating in the cryptocurrency insurance space. Despite not having a live platform, it is treading a path already followed by the relative giant Nexus Mutual — market cap $607 million. Its management team is top tier, and the project is backed by leading VCs. That reduces the risk somewhat and justifies a risk score of 5. The potential, however, is in the price of its token. With a market value of $15 million and a price of $0.02, it is clear the market has overlooked this project’s potential, although it is a newcomer to the market, having only just completed an IDO. We have set a price target of $0.25. With the launch of its mainnet imminent, now would be a good time to start your own due diligence on this one. The biggest risk overhanging this project is its huge maximum token circulation.