Popular Analyst and Trader Lark Davis is backing Polkadot-based decentralized insurance project Tidal Finance and says that he is personally buying it.

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Tidal combines various protocols into coverage pools, allowing liquidity providers (LPs) to stake their capital to cover several protocols at once. These pools are put together to allow limited partners to leverage their money while minimising risk. By combining protocols with low correlation and reducing the duration of each coverage cycle, risks are minimised. 

It’s proposing the best yields to depositors and the lowest premiums to buyers of insurance plans. Insurance pools will be over-leveraged to assure that sufficient funds are always available if they have to cover any losses when claims inevitably come in because that’s a part of defi and is going to happen in DeFi.

Tidal also revealed that it has joined hands with over 20 DeFi platforms to bring coverage for its users. Few of these protocols include bZx, Reef Finance, Equilibrium, StakeDAO, and others.

Tidal’s sale will go live on polkastarter on 23 and if you tend to miss that then They’re also going to do a public sale over on Balancer on the 25th.

Tidal has partnered with Polkastarter and Balancer for their initial distribution. Here the tokens will be bought by the white-listed users. Tidal being high on market demand initially conducted a lottery to select the Ethereum addresses that are entitled to join in the IDO.180.000 applications, out of which only 328 addresses were randomly chosen and whitelisted to participate in the token sale.

Davis says that,

I’m massively bullish on the insurance use case for decentralized finance and for cryptocurrency more broadly, especially considering that right now it seems like we barely go a week without another smart contract hack in DeFi or people losing millions of dollars worth of money. This is exactly where something like Tidal Finance steps in. Tidal connects the buyers and the seller in their insurance marketplace to help cover against smart contact risk.”