Risk Harbor adopts the decentralized insurance protocol Ozone on Terra. network
The Ethereum-based Decentralized Financial Market (ETH), or DeFi, Risk Harbor, will soon take control of Terra’s ozone protocol, according to a press release released on Thursday.
Ozone is a decentralized insurance mechanism that provides insurance in the event of a technical failure of the Terra DeFi ecosystem. The latter is a dual token platform with the governance token LUNA and the stablecoin Terra USD (UST), which has a 1: 1 exchange rate to the US dollar. The UST lacks the underlying USD reserve to support it. Instead, it is backed up by a LUNA algorithm, and users can use LUNA to earn rewards to fix the UST exchange rate. The network has gained significant momentum in terms of the total blocked value.
With Ozone, insurers who deposit USTs can get coverage when smart contracts on the Terra network are not properly executed – for example, when users cannot withdraw their money from a UST savings account. Similarly, Risk Harbor operates an Ethereum DeFi hub which allows coin holders to cover their DeFi assets with an upfront premium. Meanwhile, other users acting as underwriters put their venture capital into various pools of insurance collateral to earn rewards.
Do Kwon, co-founder and CEO of Terraform Labs, commented on the development as follows:
“The talented and ambitious team at Risk Harbor has extensive experience working with DeFi protocols in the emerging risk management space that created one of the leading license-free insurance markets in the world: Ethereum. We’re excited for the Terra community as Risk Harbor is taking the reins of Ozone and developing a capital efficient and decentralized risk management marketplace for the Terra ecosystem as a whole. “
Ozone is currently being audited by blockchain security companies like Oak Security and Certik. Pending the outcome of a Terra Community Governance vote, Ozone will be turned over to the Risk Harbor developers for maintenance and management.
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Risk Harbor adopts the decentralized insurance protocol Ozone on Terra. network
The Ethereum-based Decentralized Financial Market (ETH), or DeFi, Risk Harbor, will soon take control of Terra’s ozone protocol, according to a press release released on Thursday.
Ozone is a decentralized insurance mechanism that provides insurance in the event of a technical failure of the Terra DeFi ecosystem. The latter is a dual token platform with the governance token LUNA and the stablecoin Terra USD (UST), which has a 1: 1 exchange rate to the US dollar. The UST lacks the underlying USD reserve to support it. Instead, it is backed up by a LUNA algorithm, and users can use LUNA to earn rewards to fix the UST exchange rate. The network has gained significant momentum in terms of the total blocked value.
With Ozone, insurers who deposit USTs can get coverage when smart contracts on the Terra network are not properly executed – for example, when users cannot withdraw their money from a UST savings account. Similarly, Risk Harbor operates an Ethereum DeFi hub which allows coin holders to cover their DeFi assets with an upfront premium. Meanwhile, other users acting as underwriters put their venture capital into various pools of insurance collateral to earn rewards.
Do Kwon, co-founder and CEO of Terraform Labs, commented on the development as follows:
“The talented and ambitious team at Risk Harbor has extensive experience working with DeFi protocols in the emerging risk management space that created one of the leading license-free insurance markets in the world: Ethereum. We’re excited for the Terra community as Risk Harbor is taking the reins of Ozone and developing a capital efficient and decentralized risk management marketplace for the Terra ecosystem as a whole. “
Ozone is currently being audited by blockchain security companies like Oak Security and Certik. Pending the outcome of a Terra Community Governance vote, Ozone will be turned over to the Risk Harbor developers for maintenance and management.
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