2021-02-17 01:18:55
#Азиатские_Киты
PBC Confidential Buy AlertToday, we’re adding three new positions to our cryptocurrency trading portfolio.
All three of them are situated in a trend I detailed last year: decentralized finance (DeFi).
As I laid out in December, I believe 2021 will be the year of DeFi and we stand to make an absolute fortune off this trend. But just like any new technology, there will be setbacks to overcome along the way... So finding the projects that plug those holes is a great way to profit as other companies seek out their solutions.
One of the major risks DeFi investors face is smart contract risk. That’s the risk of a bug in the smart contract’s code that causes it to not function the way it was intended to. Or even worse, there’s the risk of a malicious hacker finding and exploiting the bug to steal assets from users.
Earlier this month, we told you of an exploitation like this in the vaults of one of our recommendations, Yearn.finance (YFI). Although the Yearn.finance team has since covered the $11.1 million losses, it warned its users not to expect the same response next time.
So what should DeFi investors turn to for risk protection? Yearn told users they should purchase insurance on the products they use. And I believe this is the next big opportunity in DeFi.
Not only will bringing insurance to this space lower the risk of loss from these types of events, it’ll also pave the way for more serious players to enter the space.
As larger players begin to move into the DeFi space, I anticipate the demand for insurance on these platforms will exponentially grow as more conservative investors will seek to minimize potential risk.
And the projects that provide this service will soar. So by getting in front of this trend today, we’re setting ourselves up ahead of the oncoming rush into DeFi.
As always, place no more than $200–400 for smaller accounts and $500–1,000 for larger accounts into these trades.
We’re already seeing the need for insurance and some projects are catching on. In fact, the first recommendation I’m making today paid out to those who purchased insurance on the Yearn.finance attack.
The name of the project is Cover Protocol (COVER).It provides peer-to-peer coverage on smart contracts. Cover Protocol removes the middleman and lets the market set the price of insurance by allowing users to both sell and purchase insurance on 29 DeFi protocols.
Prior to blockchain technology, individuals could only purchase insurance from industry providers. And individuals selling insurance on an asset or product was never heard of – until now.
By enabling users to participate in both sides of the trade, Cover incentivizes market makers to sell insurance, thus lowering the costs for those seeking coverage.
COVER is the project’s governance token. Currently, individuals can use it to validate insurance claims and vote on proposals Cover might take on.
Since inception, Cover Protocol has paid out claims on three incidents on DeFi protocols. Its governance system for approving and fulfilling claims is gaining respect from the community. Cover is solidifying itself as a legitimate option for protecting users against smart contract risk.
In the future, we expect Cover to reward token holders with a share of the platform’s profits since they control the protocol and play a major role in handling claims.
By purchasing COVER today, we’re positioning ourselves as stakeholders in one of the top providers in DeFi insurance.
Action to Take: Buy Cover Protocol (COVER).Buy-up-to Price: $1,800Stop Loss: None
Buy It On: Binance, Uniswap, SushiSwap
Store It On: MyEtherWallet
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