Integration with Tidal Finance is crucial to Oasis Network’s ambition of scaling its DeFi offerings
In a blog post released on Friday, the Oasis Foundation announced that the decentralized finance (DeFi) insurance and coverage provider Tidal Finance will be partnering with the Oasis Network, integrating its cross-chain insurance protocol on the platform to enable decentralised insurance.
The announcement explained that the move to collaborate with Tidal was crucial in enabling the sustainable scaling of the network’s DeFi offerings, and pointed out that Tidal Finance was chosen for its ability to provide insurance coverage for a variety of assets in custom liquidity pools.
It further added that the integration will go beyond just enhancing insurance capabilities. By working with Oasis’ confidential smart contracts, Tidal stands to gain the ability to deploy new claims methods, including anonymous and democratised voting, and develop systems that can effectively preserve voter and user privacy.
“In short, their community could vote on whether a particular claim should be approved in a privacy-preserving manner,” the announcement summarized.
Similar initiatives to integrate or launch new insurance platforms have been seen recently in the Ethereum DeFi ecosystem as projects aim to embed coverage directly into their offerings at the protocol level. Unslashed Finance, a decentralised insurance protocol, was one of the projects who made significant progress as it announced that it had raised $2 million for its tokenized insurance product in March.
Oasis Network’s partnership with Tidal will allow users to transact over-leveraged covers and enable them to hedge against the failure of any DeFi protocol or asset.
With the network rapidly expanding, this collaboration with Tidal will only contribute to ensuring that investors can exploit the benefits of a new class of privacy-enabled financial vehicles while minimising their risk exposure.
“We are excited to work with Oasis to pioneer the next frontier of smart contract coverage,” said Tidal co-founder Chad Liu.
While Oasis has recently been involved in a number of initiatives focused on big data, data privacy, decentralized finance, and combating crypto fraud, the partnership signifies a renewed strategy that targets the DeFi market in particular.
“[This] addition to the expanding list of DeFi partners building on the Oasis Network brings us one step closer to realizing our vision for a responsible data economy and privacy-enabled DeFi,” the blog stated. It confirmed the significance of the partnership by stating that multiple lending protocols and decentralised exchanges will be integrated into the Oasis Network in the coming months.