InsurAce.io is pleased to announce its official partnership with Defrost Finance, the platform behind the next generation stablecoin.
Defrost finance is a decentralized protocol that allows users to utilize liquidity pool (LP) tokens and other pool tokens from various Avalanche and cross-chain protocols as collateral for generating H2O, a soft-pegged stablecoin native to the Avalanche ecosystem.
The defrost protocol generates highly liquid stable assets (such as H2O) by using idle, less liquid assets such as liquidity provider tokens which normally exist as locked capital and usually can’t be put to further use.
Defrost finance allows users to stake the LP token, use it as collateral to mint H2O and then repay the loan in the future. By doing this, there is no need to cash out on LP tokens to obtain liquidity.
Security has always been on the forefront of the mind of the Defrost Finance team. They have a dedicated docs page and also successfully completed an audit through Certik in November last year. This can all be found here: https://docs.defrost.finance/security-and-risks/security
As part of this partnership, Defrost users are now able to purchase smart contract vulnerability insurance cover on the Avalanche public chain. This can be done here: app.insurace.io
“We’re really excited for this partnership with Defrost finance. We’re seeing more and more users unfreeze their wealth through the protocol and it was important to us to ensure that we could protect these users. This partnership will also see us collaborate together, we’ve already co-hosted an AMA and we have plans to work together again in the near future on other informative marketing activities.” Oliver Xie, Founder, InsurAce.io
About Defrost Finance:
DeFi protocols have developed into an asset class worth tens of billions of dollars. A big part of these assets is stablecoins secured by centralized currencies, such as USDT and USDC. Decentralized stable coins such as DAI only account for a small part of the total supply of stable coins. This means that most stable coins are centralized. There are great needs and potential for decentralized stablecoins natively born in DeFi.
At the moment there is no native stable coin on Avalanche. Defrost Finance will solve this by generating its H2O stablecoin from collateralized LP Tokens both on Avalanche and through decentralized cross-chain bridges. We aim to release a large number of native stablecoins on Avalanche, which should help to defrost the frozen liquidity and feed the demand for expanding the DeFi ecosystem on the chain.
Moreover, Defrost Finance accepts almost exclusively LP tokens from Dexes and interest-bearing tokens from lending protocols as collateral. So for example, a user can deposit USDC/DAI LP tokens from Traderjoe, which entitles its holder to fees from Traderjoe’s USDC/DAI pool, to Defrost Finance. The user can then generate H2O against USDC/DAI LP tokens and harvest further rewards.
It’s a powerful combination to retain yield bearing capabilities while also gaining the ability to borrow.
Join Defrost community:
InsurAce.io is a decentralized multi-chain insurance protocol, to empower the risk protection infrastructure for the DeFi community. InsurAce.io offers portfolio-based insurance products with optimized pricing models to substantially lower the cost; launches insurance investment functions with flexible underwriting mining programs to create sustainable returns for the participants, and provides coverage for cross-chain DeFi projects to benefit the whole ecosystem.
At the time of writing, InsurAce.io has provided coverage to 135+ protocols, safeguarding over $324M+ DeFi assets on 20+ public chains.
InsurAce.io is backed by DeFiance Capital, Parafi Capital, Alameda Research, Hashkey Group, Huobi DeFi Labs, Hashed, IOSG, Signum Capital, Long Hash Ventures and a dozen of other top funds.
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