Decentralized Finance Firm, UNION, Raises $3.9M to Expand Risk Management Protection


0
1 share

UNION, a defi risk management firm, raised $3.9 million in a funding round, which drew participation from several crypto trading companies and venture capital firms. Some of the key firms that led the funding round include 3 Commas, Solidity Ventures, AAM, Spark Digital Capital, Alameda Research, Black Edge Capital, and Alpha Chain.

Decentralized finance was slated to become the success story of 2020 for the crypto world; however, the defi ecosystem has started to show the vulnerabilities which many analysts predicted earlier. In recent times, there have been reports of several defi projects cropping up within weeks and managed to create a market cap of tens of millions of dollars just because of the hype surrounding defi.

Read Also:   Privacy, Power, Fiscal Policy, the Poor: 4 Reasons to Worry About CBDCs

The popularity also led to several scam tokens and platforms. With the rising vulnerabilities and risks in the defi market, Union comes in as a safeguard against some of the most common risks associated with defi these days. Those risks include glitchy smart contracts, overexposure to an asset, layer 1 risk (entire protocol fails), impermanent loss (specific to liquidity providers), and collateralization risk.

UNION Promises Complete Risk Management

UNION is looking to cover all the risks associated with the defi space and believe a complete package like theirs is more economical and secure than insurance against individual risks. Union co-founder Michael Beck believes that security and protection for customers are necessary to scale the ecosystem further. He said,

“As DeFi is still growing, it would be disingenuous of anyone to state that they ‘know all the risks’ of Defi.”

Beck noted that such a mechanism “is necessary for DeFi protection to scale with DeFi itself.” He added,

“No one can guarantee what regulators will do, but as of right now, where people can use DeFI, they can use our protection tools.”



Google Play

Source link


Like it? Share with your friends!

0
1 share

0 Comments

Leave a Reply

Decentralized Finance Firm, UNION, Raises $3.9M to Expand Risk Management Protection

by Anthony Beattie
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format