Cryptocurrency News

Opium and Uma Offer Decentralized Insurance for SpaceX

In an important development, UMA and Opium have come together to demonstrate to the world how decentralized finance (DeFi) ecosystem based on the Ethereum blockchain can potentially grow with the inclusion of off-chain data. The Oracle solution from the UMA can be effectively utilized to bring the data to the blockchain completely. This, coupled with the excellent solution of the decentralized insurance contract of Opium, can open new doors of opportunities for investors.

The stakeholders who are having some financial stake in SpaceX can hedge the risk or even go for the option of simply speculating. The insurance will cover the following events:

  • Buyers will get 100% nominal if the launch turns out to be unsuccessful in terms of its lift-off or it gets delayed for more than 2 weeks.
  • Buyers will get 50% of the nominal if the successful lift-off but the landing turns out to be unsuccessful.
  • In case both lift-off and landing are successful, no payout will be delivered.

It is important to note that the protection for the launch of SpaceX can be bought by stakeholders until June 23, 2021.

Opium insurance that has been offered for SpaceX has two facets to it:

  • Asset Staking that aims to cover the protection for the SpaceX
  • Insurance Buying

Depending upon the user’s risk appetite, either of the options can be selected, and accordingly, they will be rewarded with financial Returns. If an investor is interested in buying the derivative, they have to purchase the decentralized insurance against the risk of a failed launch and then make a payment to the derivative seller in terms of a premium. The main job of the derivative sellers here is to offer coverage against the failed launch, and in the process, they will earn a premium by locking the amount in the form of collateral.

It will be interesting to witness how this decentralized insurance program will find favor with prospective investors. This opportunity can turn out to be a good opportunity for making money, and this particular facet of decentralization insurance is expected to help the DeFi industry to grow even at a faster pace than before.

Erica Lee

Erica is a finance professional who has over a decade of experience in the finance sector as a management consultant. After years of reporting on forex, stock markets, and finance, she now contributes her strong financial skills with the CoinNewsSpan team. Since 2014, she has been deeply involved in the blockchain and cryptocurrency space. She believes that blockchain technology has tremendous potential to make our lives better.

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