KR1 PLC (LON:KR1) said it has invested US$200,000 in the Tidal Finance project in return for around 222.2mln Tidal tokens as part of a funding round.
Tidal is a decentralised insurance marketplace built on the Polkadot blockchain which allows users to create custom cover pools for digital assets. KR1 said that by rewarding pool creators with a portion of the return from deposits, Tidal “maximises capital efficiency and thereby attracts professional liquidity providers”, which in turn allows for more competitive offering of cover premiums, attracting potential buyers.
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The Aquis-listed digital asset investor added that as a decentralised network Tidal is governed entirely by Tidal token holders through a decentralised autonomous organisation (DAO) architecture, with the Tidal token capturing economic value generated from returns of cover pools.
“The current DeFi (Decentralised Finance) ecosystem is built on some key pillars that make it function, such as decentralised exchanges, lending markets and stablecoins, as well as marketplaces for protection against various kinds of risk”, KR1 managing director George McDonaugh said in a statement.
“Tidal is perfectly positioned to capture market share as an important service for managing risk and, over time, become a central part of Polkadot’s emerging DeFi sector. We are very excited to be involved at such an early stage with a project building on the core principles of DeFi, with its focus of community involvement, decentralised governance and sharing in the success of the platform”, he added.
KR1 shares were trading at around 22p in late-afternoon on Wednesday.