To allow price protection on $CAI, the Colony Avalanche Index, Colony and Phuture officially partnered with Degis, the first DeFi insurance mechanism on Avalanche.
The risk associated with cryptocurrencies is inevitable, and systems can be misused. Each person’s risk tolerance is different, but there is still a need for proper insurance coverage overall in this quickly expanding asset class. Investors in $CAI will be able to reduce risk and safeguard their entire portfolio against significant token price variations resulting from regular market swings and “black swan” occurrences, thanks to their relationship with Degis.
The Degis Price Protection solution currently includes Bitcoin, AVAX, and key project tokens to minimize risk for the Avalanche ecosystem.
The majority of insurance protocols today only cover vulnerabilities in smart contracts and protocol hacks. The product’s strong infrastructure on Degis protects against token price changes, making it appealing to a much wider market. Investors in $CAI will be able to produce, acquire, and sell matching protection tokens. If the $CAI price is lower on the insurance policy’s expiration date, the owners of protection tokens will get compensation.
Users can supply liquidity, reap trading and mining profits, and trade $CAI protection token before expiration.
Investors in $CAI would be able to buy the price protection shortly after the launch.
The very first on Avalanche, Degis is the latest all-in-one protection mechanism.
Degis will provide traders and consumers with complete safety, a decentralized protection market, and eventually introduce scalable risk management to the cryptocurrency industry. A decentralized crypto index platform called Phuture (PHTR) streamlines investments through themed index funds that are automatically managed on ETH and Avalanche. Anyone with an internet connection may access Phuture, making it ideal for investors wishing to improve their approach to investing in cryptocurrencies. Phuture was established in 2019 and has secured USD 3.75 million from VCs and cryptocurrency funds.
The Colony is a community-driven incubator that will eventually become an open DAO to support the expansion of the Avalanche ecosystem driven by the $CLY governance token.
Colony invests money in Avalanche’s early-phase initiatives, gives DeFi protocols liquidity, certifies networks using stacking technology, and will keep an index of the best Avalanche initiatives. Colony’s investments provide the community with life and wealth through airdrops, a repurchase mechanism, and staking rewards.
