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.
SAN FRANCISCO (PRWEB) November 04, 2021
Risk Harbor, a fully automated risk management marketplace for DeFi, has unveiled plans to secure Ozone Protocol, an algorithmic asset protection platform covering the Terra ecosystem -- offering a marketplace for buying and selling coverage for various forms of risk on the Terra network.
“At Risk Harbor, we've created the future of risk management marketplaces. We believe every single crypto asset should be protected without the need for trusted intermediaries, thereby securing a truly permissionless and open financial system accessible to everyone,” said Raouf Ben-Har and Drew Patel, founders of Risk Harbor. “We're excited to bring capital-efficient, risk-aware, truly decentralized protection to Ozone, the Terra ecosystem, and the broader crypto-economy."
Risk Harbor currently operates a burgeoning DeFi risk management marketplace on Ethereum.
Risk Harbor allows potential policyholders to purchase coverage for their DeFi assets for an upfront premium, with coverage underwritten by users that deposit capital into a variety of protocol risk pools in return for risk-adjusted rewards. Current pools include smart contract coverage for money markets and stablecoins, including Terra’s Anchor Protocol and UST, which currently have the highest utilization ratio of any pool on Risk Harbor.
Ozone is an algorithmic, claims-based asset protection platform covering various forms of risk in the broader Terra ecosystem. The protocol, which was incubated by Terraform Labs (“TFL”) at the direction of the Terra community via an on-chain governance vote proposal 44, will be handed over to the Risk Harbor team to launch and operate long-term. Proposal 44 also authorized the initial capitalization of Ozone to be provided by the Terra Community Pool.
“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,” says Do Kwon, Co-Founder and CEO of Terraform Labs. “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.”
At the time of proposal 44, there was only $1 billion of LUNA in the Terra Community Pool. Since then, due to changes implemented by proposal 44 and LUNA’s meteoric price run throughout 2021, the size of the pool has increased to its current mark of 98,675,921 LUNA (~$4.3 billion).
As a result, a new community governance proposal to determine how much of the Terra Community Pool will be allocated to Ozone will follow Terra’s ongoing vote (Prop 134) to burn 88,675,000 LUNA from the community pool, swapping it for UST -- Terra’s flagship stablecoin. Pending the results of both governance votes, Ozone will be transferred to the Risk Harbor team, who will steer the future direction of the protocol on Terra as its lead developer.
The Risk Harbor team, Do Kwon, and TechCrunch Founder Michael Arrington will also announce the launch of Arrington Anchor Fund, a regulated LP vehicle for institutions to deposit USD into Anchor Protocol that is secured by Ozone’s risk coverage.
Ozone is currently undergoing an audit from well-reputed industry auditing firms Oak Security and Certik. Risk Harbor plans to open-source the platform’s core protocol code and release the official launch schedule publicly soon.
About Risk Harbor
Risk Harbor is a risk management marketplace for decentralized finance (DeFi) that utilizes a completely automated, transparent, and impartial claims process to protect liquidity providers and stakers against smart contract risk, hacks, and attacks. Risk Harbor believes every single crypto asset should be protected without the need for trusted intermediaries, thereby creating a truly permissionless and open financial system accessible to everyone.
Terra is an application-specific public blockchain built on the Cosmos SDK and Tendermint consensus. The Terra protocol deploys a suite of algorithmic, fiat-pegged stablecoins underpinning a thriving DeFi ecosystem like Anchor, CHAI, and Mirror Protocol. LUNA, the native staking and governance asset of Terra, absorbs the short-term volatility of Terra’s stablecoins, with Terra’s stablecoin (e.g., UST) demand a function of demand for Terra’s DeFi ecosystem -- accruing value to LUNA via seigniorage.