Unslashed Finance announced last Friday, November 19, through its Twitter account, its new partnership with ParaSwap to be used as an integrated solution for its insurance needs.
“With the launch of the PSP token, we saw the birth of gambling and the multiple incentives that led ParaSwap’s Private Market Makers to become even more competitive and efficient. With this, came an influx of PSPs into various betting pools. In a move to protect its users from the problems that could arise from smart contracts, ParaSwap purchased a $30 million hedge from Unslashed Finance, the first instance of a liquidity aggregator buying coverage in bulk for its users”, he told through an article published on the Medium platform.
As explained by the company, ParaSwap is a network of liquidity aggregators backed by industry-leading Market Makers and connected to more than 90 liquidity venues (DEX, AMM, etc.) through 4 different networks (Ethereum, BSC, Avalanche and Polygon). ParaSwap allows users to stake their PSP tokens, any PSP amount, without having long lockout periods or maintaining any infrastructure. PSP holders use the stakes to back their Preferred Market Makers in exchange for a portion of their rewards (currently yielding more than 170% APY).
In his view, after just 72 hours, ParaSwap had more than 37 million PSP tokens staked on its contracts, deposited among more than thousands of participants. The partnership between Unslashed Finance and ParaSwap serves to protect stakeholders against issues that could be associated with their smart contracts, mitigating one of the fundamental risk factors associated with gambling.
The company assured that this association also covers the risks of V5 exchange contracts, time blocking and DAO multisigs, as well as award contracts, allowing full coverage of the stack and protecting all stakeholders.
Insurance as a competitive advantage?
Similarly, the company noted that ParaSwap’s purchasing of insurance in bulk for its users is monumental and offers significant benefits to ParaSwap’s DAO in several ways:
• Provides a smoother experience for users and encourages inclusion.
• It builds trust between ParaSwap and its users and shows how important it is to protect its users.
• Sets the precedent that insurance is essential
• Encourages more money inflows into the $PSP token by making bets safer