Before we get started, DeFi Dad disclosed as Head of Marketing and Portfolio Support at 4RC, that 4RC does hold a position in Bridge Mutual. This is not a recommendation or endorsement to buy BMI, but it is intended to disclose any bias he might have in talking about Bridge Mutual’s new liquidity mining program.
In the world of DeFi, we’re no stranger to countless risks that could lose our capital. I’ve written countless times about the dominance of Nexus Mutual in this space with up to $1B in active coverage in the spring. However with only about 1% of DeFi TVL covered, DeFi is still ripe for more protocols to emerge and help grow the pie with DeFi insurance.
Bridge Mutual just launched a new DeFi insurance offering, with a 2-week liquidity mining program to help distribute its native governance token, BMI.
Similar to Nexus Mutual, Bridge requires 2 different participants to offer coverage against DeFi exploits: those who buy cover vs those who provide cover. It’s a very simple model with some limitations (ie Bridge isn’t using leverage at this time to offer cover).
Here’s how the mutual works:
- For those who wish to provide cover, they must deposit USDT against a protocol.
- Every 1 USDT deposited provides 1 USDT of cover for 1 year.
- There is an 8 day waiting period to allow pending claims to fully resolve.
- For those who wish to buy cover, they can simply choose a timeframe of 1-52 weeks and how much cover in USDT at a premium of 2% APR (besides BarnBridge currently at 32.4% APR).
How to Earn Up to 54% ROI with USDT over 8 Days with Bridge Mutual
There are 3 opportunities in today’s tutorial, with emphasis on this short term liquidity mining program ending in 8 days.
- Deposit USDT to provide cover and earn up to 2454% APY (based on BMI price and liquidity deposited)
- Earn ~40% APY staking BMI
- Earn ~605% APY staking the BMI/ETH Uniswap V2 LP
A few important details to consider in the farms above.
- Coverage Liquidity is subject to an 8-day cooldown (necessary to keep the platform capital efficient for claims).
- During the Coverage Mining ending in the next 8 days, Coverage Liquidity cannot be withdrawn until the event is over, plus an additional 8 days cooldown.
- For withdrawing rewards (BMI), there is a 100-day lockup, or else you face an exit fee, starting at 90% and gets reduced every day by 0.7% for 100 days.
- After the 8-day cooldown period, users have 48 hours to withdraw tokens.
Please also be aware of a few major risks.
- Smart contract risk in Bridge Mutual contracts.
- Oracle failure could also contribute to a loss of funds.
- Pegged assets like USDT can de-peg.
- The quoted APYs are likely to change by the time one hops into this tutorial. The amount of deposited iquidity and the market price of BMI will affect the estimated APYs.
- As always, this is not financial advice.
Here’s how to get started!
1 – My favorite opportunity is to earn with USDT by providing cover, which refers to the title “earning 54% ROI over 8 days.” Assuming I have USDT, I first go to the Bridge Mutual Earn Interest app.
2 – I select BarnBridge or any protocol I’m willing to risk my USDT providing cover against, well aware I could lose all or a fraction of that USDT if a claim were paid out to a cover holder. At this moment, BarnBridge cover providers are expected to earn 2454% APY (equal to 54% ROI in…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
