{"id":42041,"date":"2021-05-06T18:49:51","date_gmt":"2021-05-06T15:49:51","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=42041"},"modified":"2025-08-30T21:27:53","modified_gmt":"2025-08-30T18:27:53","slug":"opium-protocol-launches-asset-insurance-service-for-sidechains","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/opium-protocol-launches-asset-insurance-service-for-sidechains\/","title":{"rendered":"Opium Protocol launches asset-insurance service for sidechains"},"content":{"rendered":"<p>The DeFi platform for cryptocurrency derivatives Opium Protocol unveiled Bridge Protection, a solution designed to hedge risks when interacting with sidechains.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udce3As the importance of side-chains increases in the <a href=\"https:\/\/twitter.com\/hashtag\/DeFi?src=hash&#038;ref_src=twsrc%5Etfw\">#DeFi<\/a> Opium presents Bridge Protection that is decentralised &#038; tradable insurance<br \/>With it, the largest and most solid side-chains bridges like<a href=\"https:\/\/twitter.com\/0xPolygon?ref_src=twsrc%5Etfw\">@0xPolygon<\/a> <a href=\"https:\/\/twitter.com\/xdaichain?ref_src=twsrc%5Etfw\">@xdaichain<\/a> <a href=\"https:\/\/twitter.com\/AnyswapNetwork?ref_src=twsrc%5Etfw\">@AnyswapNetwork<\/a> <a href=\"https:\/\/twitter.com\/pNetworkDeFi?ref_src=twsrc%5Etfw\">@pNetworkDeFi<\/a> get safer<a href=\"https:\/\/t.co\/HWt7hLtaL6\">https:\/\/t.co\/HWt7hLtaL6<\/a><\/p>\n<p>\u2014 Opium (@Opium_Network) <a href=\"https:\/\/twitter.com\/Opium_Network\/status\/1390297833706725396?ref_src=twsrc%5Etfw\">May 6, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The tokenised and decentralised insurance solution is based on the Opium CDS contract [credit default swap]. Insurance can be bought or sold as a token through the Opium Staking service.<\/p>\n<p>Opium Protocol noted that the reliability of the sidechain determines the safety of the bridge that connects it to the mainnet. The so-called bridge contract on the mainnet is responsible for holding assets sent to the side chain.<\/p>\n<p>According to the scheme below, users confident in the reliability of a given bridge place funds in a staking pool to earn fees. Network participants seeking to hedge risks, on the other hand, pay for monthly insurance coverage.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"523\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/opium-1024x523.png\" alt=\"DeFi-\u043f\u0440\u043e\u0435\u043a\u0442 Opium Protocol \u0437\u0430\u043f\u0443\u0441\u0442\u0438\u043b \u0441\u0435\u0440\u0432\u0438\u0441 \u0441\u0442\u0440\u0430\u0445\u043e\u0432\u0430\u043d\u0438\u044f \u0430\u043a\u0442\u0438\u0432\u043e\u0432 \u0432 \u0441\u0430\u0439\u0434\u0447\u0435\u0439\u043d\u0430\u0445\" class=\"wp-image-134268\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/opium-1024x523.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/opium-300x153.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/opium-768x392.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/opium-1536x784.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/opium.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Data: Opium Protocol.<\/figcaption><\/figure>\n<p>When a user deposits assets into the pool, they assume the risks associated with the chosen sidechain. Withdrawals are possible once a month \u2014 on the pool&#8217;s rebalance day. The position can be resold on the secondary market at any time.<\/p>\n<p>The insured will receive a payout in the event of a failure or hack of the bridge contract. The staker in such a scenario will lose their assets.<\/p>\n<p>Back in December 2020, the platform <a href=\"https:\/\/forklog.com\/en\/news\/defi-project-opium-protocol-to-launch-insurance-and-staking-service\">launched a service<\/a> for hedging risks with Opium Insurance for the DeFi sector.<\/p>\n<p>In January 2021, the platform <a href=\"https:\/\/forklog.com\/en\/news\/opium-protocol-launches-governance-token-opium\">launched the governance token OPIUM<\/a> as part of its own drOpium liquidity mining model.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The DeFi platform for cryptocurrency derivatives Opium Protocol unveiled Bridge Protection, designed to hedge risks when interacting with sidechains.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[508,2070,488],"class_list":["post-42041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-insurance","tag-opium-protocol","tag-sidechains"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/42041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=42041"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/42041\/revisions"}],"predecessor-version":[{"id":42042,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/42041\/revisions\/42042"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=42041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=42041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=42041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}