Risk Harbor set to take over decentralized insurance protocol Ozone on Terra network

Published at: Nov. 4, 2021

Ethereum-based (ETH) decentralized finance, or DeFi, risk management marketplace Risk Harbor will soon take over control of Terra's Ozone Protocol, according to a press release published on Thursday.

Ozone is a decentralized insurance mechanism that provides coverage in the event of technical failures on the Terra DeFi ecosystem. The latter is a dual-token platform that features its governance token LUNA and stablecoin Terra USD (UST), which has an exchange rate of 1:1 with the U.S. dollar. UST has no underlying USD reserves backing it. Instead, it's collateralized via an algorithm by LUNA, and users can earn rewards by using LUNA to fix UST's exchange rate. The network has gained significant momentum in terms of total value locked. 

Using Ozone, insurers who deposit UST can receive coverage when smart contracts do not execute properly on the Terra network — such as when users cannot withdraw their money from UST savings accounts in the Terra Anchor Protocol. Similarly, Risk Harbor operates an Ethereum DeFi hub that enables coinholders to cover their DeFi assets for an upfront premium. Meanwhile, other users act as underwriters that deposit their at-risk capital in various insurance collateral pools to earn rewards.

Do Kwon, co-founder and CEO of Terraform Labs, had the following to say regarding the development:

“Risk Harbor's talented and ambitious team has extensive experience working with DeFi protocols in the blossoming risk management space, having created one of the leading permissionless coverage marketplaces on Ethereum. We're thrilled for the Terra community to have Risk Harbor take the reins of Ozone and pioneer a capital-efficient and decentralized risk management marketplace for the Terra ecosystem at large.”

Ozone is currently undergoing an audit from blockchain security firms such as Oak Security and Certik. Pending the results of a Terra community governance vote, Ozone will be transferred to Risk Harbor's developers for maintenance and management. 

Tags
Decentralization
Technology
Blockchain
Ethereum
Altcoin
Business
Cryptocurrencies
Defi
Press Release
Stablecoin
Insurance
Savings Accounts
Related Posts
Euro-pegged stablecoin at heart of DeFi protocol that’s taking on Tether
A crypto payments platform has undergone a rebrand — and has launched a new suite of easy-to-understand applications that are designed to deliver innovation in decentralized finance. Mimo is a new protocol that serves as a successor for TenX, which captured the imagination of early adopters by allowing them to complete crypto transactions anywhere using a card. Much of the foundational technology used to build TenX is now being implemented in Mimo, which aims to bring exciting new features to the DeFi space. At the center of its offering is Parallel (PAR), which has been billed as the first decentralized …
Decentralization / May 3, 2021
Anchor protocol's reserves head toward depletion due to lack of borrowing demand
Anchor, the flagship savings protocol of the Terra Luna (LUNA) ecosystem, has seen its reserves decline by 35.7% in the past seven days according to Terra.Engineer. Since the beginning of December, the amount of Terra USD Stablecoin (UST) held in the "terra1tmnqgvg567ypvsvk6rwsga3srp7e3lg6u0elp8" smart contract has declined by over 50%, with only $35.7 million remaining. As a savings protocol, users deposit their UST assets via their wallets and earn up to 20% yields as their principal is lent out to borrowers, who pay interest on the loan amount. Borrowers must deposit collateral to ensure the lender can get their money back …
Adoption / Jan. 27, 2022
What are the most bullish cryptocurrencies to buy right now? | Find out now on The Market Report
The Market Report with Cointelegraph is live right now. On this week’s show, Cointelegraph’s resident experts discuss what they believe are the top three most bullish coins one should take a closer look at. But first, market expert Marcel Pechman carefully examines the Bitcoin (BTC) and Ether (ETH) markets. Are the current market conditions bullish or bearish? What is the outlook for the next few months? Pechman is here to break it down. Next up: the main event. Join Cointelegraph analysts Benton Yaun, Jordan Finneseth and Sam Bourgi as each makes his case for the most bullish cryptocurrency right now. …
Decentralization / May 3, 2022
‘DeFi done right’: Layer-one protocol launches mainnet
A decentralized finance protocol has launched its mainnet — describing it as a crucial step on the journey to a frictionless financial future. Radix, which describes itself as a platform for smart money, is also launching Instapass with its Olympia mainnet — an optional user and developer service that delivers the world’s first single sign-on solution for building compliant DeFi. The Radix mainnet is being positioned as a generational improvement in the history of decentralized ledger computing — and one that delivers 100 times more executional efficiency than the Ethereum Virtual Machine. This comes hot on the heels of the …
Decentralization / July 29, 2021
From DeFi year to decade: Is mass adoption here? Experts Answer, Part 2
Yat Siu of Animoca Brands Yat is the executive chairman and co-founder of Animoca Brands, which delivers digital property rights to the world’s gamers and internet users, thereby creating a new asset class, play-to-earn economies and a more equitable digital framework contributing to the building of the open Metaverse. “2021 was the year of NFTs, and in the second half of the year, we saw a growing emphasis on GameFi. This trend will continue well into 2022. Real mass adoption of DeFi will happen via GameFi, which will explode in growth during 2022 as the potential for mass financial inclusion …
Decentralization / Dec. 22, 2021