Thanks all for participating in our Tidal Finance AMA. We really appreciate all your support. There were really good and thoughtful questions that were asked. For those who missed our AMA, this blog post is for you.
CryptoNationIN Admin – Hello @chadliu638 welcome to CryptoNationIN 🥳🎊
Chad – Hello, Everyone. Thank you for having me here.
CryptoNationIN Admin – Before we start, I request you to tell about yourself.
Chad – Sounds good. First of all. Thank you for organizing this. It is a pleasure to be there. I am the co-founder of Tidal. We are building an insurance marketplace product to connect insurance seller and buyers to cover smart contract hacks. We offer the functionalities to create custom insurance pools for one or more assets from multiple protocols. We designed the open market protocol to maximize capital efficiency to attract LP’s, while offering competitive insurance premium to attract buyers.
CryptoNationIN Admin – Amazing 🎊
Q1. How does an insurance pool work? Who can create one in Tidal finance, and what are the requirements for it?
Chad – Each insurance pool is a combination of different digital assets from different protocols. LP can inject capital into the pool, and insurance cover buyers can buy covers of the assets inside the pool. Anyone can create insurance pool on Tidal, after pool creation there will be a vetting process to validate the pool by protocol team and auditors.
Q2. What is the role of TIDAL token in the ecosystem? Where can users currently buy it, and what would be its use?
Chad – Tidal token has economic value as well as governance function. Token holder can share fees earned by tidal platform, as well as govern the payout assessment process and voting on new proposals, e.g. fee distribution, staking period, etc.
Q3. How does Tidal Finance team sees Defi potential for long-term run for the business And what is the feature That Tidal Finance will provide for the DeFi space in long run?
Chad – Personally I am pretty bullish in the defi space. I believe there will be more protocols being developed to fulfill the financial needs. Lending, trading, investment funds, etc. Tidal is positioning to be in the insurance space. Goal is to build an insurance platform to connect insurance provider and insurance buyer. Making products that hedge the risk of losing fund due to hacks and attacks.
Q4. The main problem with DeFi is the vulnerability of the smart contract , which causes loss of user funds. What special steps is $TIDAL taking to avoid this incident in the future ???
Chad – Tidal is providing a platform to connect insurance buyer and seller, connected by various insurance pools. We believe with market adoption, more and more digital assets will be included into different insurance pools, meaning covers are available for people to purchase with fair price, in case of an incident, they can be protected from the loss.
Q5. Revenue is the main thing for all platforms to survive and keep going. So, how does Tidal Finance make a income?
Chad – Tidal business model is to take a small transaction fee of insurance cover purchases.
Q6. What critical problems do you see occuring in the blockchain industry nowadays?? How does #Tidal_Finance aim to solve these problems?
Chad – In the defi space we definitely see more hacks are happening with more protocols launching and TVL increasing. Which will hurdle the space from continuous growing with the concerns of losing money from hacks. Tidal is offering an insurance product to address such concern, and to become one strong pillar to support the whole defi space for its growth.
Q7. What is difficulities and chances that Tidal face right now while crypto/blockchain market is still young and need time to grow?
Chad – As an insurance platform, one key challenge for us to understand the risks of protocols getting hacked/attacked. As well as how different protocols are interacting each other, are they being exposed to the same hack event, or independent from each other. Our research team and partnered auditors are spending a lot time on these topics. By understanding these questions better, the insurance pool can be improved to increase LP returns as well as providing lower insurance premiums. And the longer defi space exist, the deeper knowledge we will have.
Q8. What are the requirements to successfully launch an insurance pool on Tidal finance ecosystem? Also How many pools can be created per user?
Chad – Anyone can come on the platform to build the insurance pool. We provide the elements – digital assets from different protocols for users to make their own combination. After pool creation we will analyze the correlations between these assets and determine a reserve percentage level for the pool. The number of pools can be unlimited. But in my opinion a few number of popular pools will last longer over time and have more liquidity.
Q9. What is Most Special in Tidal Finance and give me a unique feature or key that is in Tidal Finance itself that is different from the others?
Chad – We are an insurance player compares to others. e.g. lending (COMP), trading (Uni), investment protocols (YFI). We are in the same space as NXM. Compare to them we have a different design to link insurance seller and buyer.
Q10. Marketing is a central element for every project, so that everyone knows the potential that a project can bring is vital to achieve the goals set. What is your strategy to attract new users and Investor to Your platform and keep them long term.
Chad – With total value lock increase in defi protocol. we believe getting insurance cover is a strong need for users. the more capital locked into defi, the bigger market it is for insurance space. Since our business model is to have a small percentage fee on each cover sold, the revenue would grow for Tidal as well.
Q11. At the moment, what is Tidal Finance focusing on?
Chad – We are focusing on developing the product. Our business development team is also busy form partnership with auditors.
Q12. What was your Motivation to build Your Project and what is your vision and mission now?
Chad – Part of the personal story is that I use some protocols by providing liquidity since last year. Back then finding covers for my investment are a bit pain point. With increasing value locked into defi I realize this is a good product that can add value to users, hence the whole defi space.
Q13. Since millions of assets have been lost due to security breaches in smart contracts. How is Tidal Finance able to Ensure user safety for the Defi ecosystem?
Chad – We realize this issue and want to bring an affordable insurance price for user to get covers. This is done through the insurance pool design to connect insurance seller and buyer. One common problem right now is that not enough insurance covers are available on the market and the price is too high.
Thank you to Chad Liu (Founder), and Community for participating in the AMA. Have a nice day