Polkadot-based Tidal Finance announced the early supporter sale for their token $TIDAL as the launch of its decentralized insurance marketplace is coming up next month.
Tidal Finance announced the sale on Twitter:
“Tidal Finance is delighted to unveil the process for the early supporter round of its platform token $TIDAL. Participants will be selected through a random process and will be eligible for a maximum individual cap of $300.”
Earlier this month, Tidal raised $1.8 million in a private token sale. Hypersphere Ventures, the venture firm co-founded by Polkadot co-founder Robert Habermeier, backed the private funding round and Spartan Capital, Kenetic Capital, and QCP Capital.
What Is Tidal Offering In The Early Supporter Round?
The early supporter round is another chance for Tidal’s community members to get further involved with its offerings. The participation round opened up on March 12th and will close on March 17th. A total of 200 addresses will win a chance to participate in the community rounds.
The whitelisting opportunity will offer participants Tidal tokens at the same price as the last private round (0.375 cents per token).
Process For The Early Supporter Participation Round
In the early supporter round, Tidal will send out an interest form for their supporters and community members interested in being a part of the Tidal ecosystem. Participants have to perform specific tasks to create awareness and foster enthusiasm for the project. The participants will be selected through a random lottery method to maintain fairness and transparency.
How Does Tidal Finance Work?
Tidal Finance is an open marketplace for programmable insurance built on Polkadot ecosystem. It aims at making DeFi safer by providing coverage for assets across chains in custom balanced liquidity pools. Users are allowed to create custom insurance pools for one or more assets.
Chad Liu, Co Founder and CEO, stated,
“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 gives our LPs the ability to generate above-average returns while offering coverage seekers highly competitive pricing.”
Tidal helps users choose risk pools depending on the type of risk they’re willing to take and filter it through a combination of protocols/assets and their coverage terms. Liquidity providers on Tidal can invest in pools that suit their risk/reward ratio.
Tidal’s Funding Rounds And Future Projects
Liu further stated that Tidal plans to launch its protocol in mid-April with this fresh capital hand it received earlier this month in their private sale round. Tidal raised $2 million last December in a token seed round, and with the funds from the private sale round, the company has total funding of $3.8 million.
Once launched publicly, Tidal will help users buy and sell insurance against DeFi protocols. Sellers will have to provide liquidity for DeFi protocols and get Tidal tokens in return. Tidal will charge a small percentage of the transaction fee from cover sellers.
Tidal plans to launch an insurance product for different proof-of-stake protocols, including Ethereum 2.0. Validators of these protocols will be allowed to buy insurance against slashing risks.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.