Investing in cryptocurrencies remains a daunting task for many people. The price volatility and associated risks deter many potential enthusiasts, but a solution is in the works. The new partnership between UnoRe and Rocket Vault will provide more stability to the broader DeFi ecosystem.
A Potentially Powerful Partnership
Rather than tackling the DeFi industry on their own, decentralized finance projects need to expand their reach through collaboration and partnerships. For more, the partnership with Rocket Vault can prove to be rather powerful. This collaboration will highlight the strengths of both platforms to create a more complex yet approachable DeFi solution.
As Rocket Vault will become an innovator on the UnoRe platform, the team can start building insurance products. As a Vault project with high APYs for stablecoins, adding an extra layer of insurance can benefit thousands of users. More importantly, the partnership paves the way for building next-generation sustainable products to elevate the DeFi industry to a new level.
Giving users options is never a bad idea in decentralized finance. Some will prefer the option of add-on insurance coverage, whereas others may not deem it necessary. Being able to choose either option is an integral step toward building a more sustainable decentralized finance industry.
Even today, there are still several risks that developers cannot eliminate entirely. A hack, market fluctuation, or smart contract bug can occur at any given time, putting users’ funds at risk. Rocket Vault users no longer have to worry about such incidents, as they can receive a 100% loss reimbursement. UnORe will provide coverage and protect users from such incidents taking place, assuming the user opts for add-on insurance coverage.
Broadening The Accessibility
A second benefit to this partnership is how UnoRe can list investment products as a Rocket Vault investment vault. Community members can invest and trade in “risk” and receive competitive returns on their investments. A valid sign of how composability in DeFi will lead to more complex and innovative products for users to experiment with.
Rocket Vault CEO and Founder Kiran Mannam comments:
“We are absolutely delighted to be Innovators on the UnoRe platform, which gives us the flexibility to design policy coverages as per our user’s needs. We believe UnoRe’s technology and expertise will enable our users to go for add-on insurance coverage as per their needs.”
Solutions like these will lower the barrier to entry for retail investors showing an interest in decentralized finance. As it is no longer required to own significant capital to invest in these markets, the playing field is level for everyone globally. UnoRe community members can propose innovative insurance products to bring insurtech to the blockchain.
Closing Thoughts
Decentralized finance is about much more than yield farming or providing liquidity. Although those first-generation concepts attract a lot of attention, the time has come to evolve beyond these solutions. Balancing complexity and accessibility is what will allow Defi to gain mainstream traction in the years to come.
Partnerships will become far more apparent in the DeFi space throughout 2021 and beyond. The collaboration between UnoRe and Rocket Vault is just an example of what the future may hold in this regard. Insurance products will play an increasing role of importance in an industry where volatility is the norm. More competitive products can become the cornerstone of DeFi 2.0.
This article was first published on coinquora.com