Tidal Finance, a decentralized insurance product trading platform based on Polkadot, is targeted at smart contracts that have been hacked.
Participants include insurance product seller (LP), buyer and guarantor. To address the problem of low utilization of funds caused by underwriting and insuring a single smart contract, Tidal Finance offers a mixed insurance pool with different risk levels that contains multiple smart contracts.
When LP underwrites by pledging stablecoin, it can select single or multiple contracts in the pool, and the portfolio will affect the yield. The buyer of the insurance product only needs to select the smart contract to be insured and the policy amount.
