HomeNEWSDegis Partners GMX on it's Protocol Protection Solution

Degis Partners GMX on it’s Protocol Protection Solution

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Prominent DeFi insurance protocol, Degis has announced a partnership with GMX. With the collaboration, Degis will offer “exhaustive insurance coverage” to those using GMX. Degis revealed it would offer the service by adopting GMX into its Protocol Protection solution. Degis added that it’s hoping the solution provides users enough compensation against loss on-chain.

According to the announcement, Degis described Protocol Protection as a next-generation protection product that provides exhaustive protection against all kinds of on-chain risks. The firm revealed that it would embrace a “unique pricing model and aggregate liquidity.” Further, Degis made it known that the premium of its product will be discerned by the base premium p% and the dynamic pricing model.

Meanwhile, GMX’s base premium is determined by all the veDEG holders. At the same time, the annualized premium in the first seven days will be set at the base premium. At the end of the seven days, the premium price will be specified by the market. Also, the value of protection Pool LP coins in every Protocol Priority Pool can as well affect the price.

Notable opportunities from the partnership between Degis and GMX

Subsequently, both Degis and GMX, including third-party auditing firms, can amend the price of the base premium. Though, veDEG holders are empowered to take the final decision on the repricing proposal. The application of the Degis pricing system, Protocol Protection can offer users precise and affordable premiums. However, it will base on the risk of the insured item, alteration in market supply and demand.

Against the existing insurance market protocols, Degis Protocol Protection has designed a Protection Pool above its Priority Pool. Now, users can offer protection for projects under insurance on the platform through the provision of liquidity to the Protection Pool. With that, the platform will be able to have enough reserves while improving the utilization rate of funds. Also, liquidity providers can as well secure premium income from all projects under insurance.

As revealed, Degis is the first protection protocol on Avalanche. It provides a decentralized protection market to bring scalable risk management to the crypto sphere. Its new Protocol Protection aims to cover risks against smart contracts and rug pulls. Degis is working on providing more DeFi insurance solutions in the nearest future.

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