UMA and Opium to Launch SpaceX Launch Insurance Solution

The DeFi platform for crypto-derivatives Opium Protocol announced a collaboration with the decentralized platform UMA to launch the Optimistic Oracle solution, according to the developers’ press release.

UMA’s new tool transmits off-chain data to the blockchain, making transactions faster and cheaper. The oracle operates on the assumption that all queries are valid. The transaction is settled with minimal gas usage.

If a user disagrees, the dispute is referred to the Data Verification Mechanism. It mirrors the familiar logic: contracts are enforced, since otherwise a court would compel performance, potentially resulting in financial losses.

Opium Protocol has implemented a risk-hedging solution via a decentralized insurance contract (CDS) linked to SpaceX flights using UMA’s optimistic oracle. It concerns the SmallSat Rideshare joint-launch program. It offers relatively inexpensive access to space for small satellite companies, starting at $1 million per payload of 220 kg.

“However, the cost still runs into the millions of dollars, and the payload owners, mainly satellite operators, may want to insure against the risk of a failed launch,” the announcement states.

The tool will also allow other parties with a financial stake in the success or failure of a given SpaceX mission to hedge risks or even speculate, as in a normal financial market.

In February 2021, UMA and the YAM Finance project put to a vote a proposal to launch the synthetic contract uSTONKS — a basket of ten stocks popular in the r/WallStreetBets community on Reddit.

In May, Opium Protocol unveiled the Bridge Protection solution, designed to hedge risks when interacting with sidechains.

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