KR1 Makes Investment in Tidal Finance

KR1 () has invested a total of US$200,000 in the Tidal Finance project in return for 222,222,222.22 Tidal ("TIL") tokens.

About Tidal Finance

Tidal Finance (“Tidal”) is a decentralised insurance marketplace built on Polkadot, which allows users to create custom insurance cover pools for digital assets.

Pool creators are incentivised to create pools that suit both the demands of contract suppliers and purchasers in the current market. 

To minimize insolvency risk, auditors thoroughly vet each pool to ensure the risk level is acceptable , and that the controlling parameters within each pool, such as reserve level, contract correlation and coverage period limitations, are in line with the vehicle’s objective.

By rewarding pool creators with a portion of the return from their deposits, Tidal maximizes capital efficiency and thereby attracts additional professional liquidity providers.

In turn, the capital efficiency model allows for more competitive offering of cover premiums, attracting potential buyers.

Investment Details

KR1 will receive a total of 222.22m TIL tokens in return for its £0.20m investment in Tidal.

As a decentralised network, Tidal is governed entirely by TIL token holders through a Decentralised Autonomous Organisation (“DAO”) architecture.

Each TIL will have an economic value generated from returns from the insurance pools.

KR1 took part in Tidal Finance's funding round alongside investors such as Hypersphere Capital and NGC Ventures, some of the largest investors in Blockchain and distributed leger technologies.

George McDonaugh, Managing Director and Co-Founder of KR1, commented: "The current 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. 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."

Reasons to Follow KR1 

Leading Edge IP

KR1 is Europe's leading digital asset investment firm supporting early stage blockchain and DeFi projects. It is a first investor in many key blockchain and DeFi projects that will power the decentralised platforms and protocols that form the emerging Web3 infrastructure.

Generating Material Revenue

KR1 unveiled back in August 2020 that it had started generating material revenue from staking activities on the Polkadot network, its largest investment and portfolio holding to date.

The company has been staking activities on Polkadot to generate revenue on an ongoing basis following its migration to a ‘Proof-of-Stake’ blockchain network back in June 2020.

To date, KR1 holds a total of Polkadot 3,558,490.89 DOT tokens, post-re-denomination. This differs from its original DOT allocation as a result of the bonus pool of unlisted digital tokens allocated pursuant to KR1’s 2017 bonus scheme, which included Polkadot as an asset.

George McDonaugh, Managing Director and KR1’s Co-founder, described the launch of Polkadot as “a momentous event” in the group’s history and one that shareholders have been waiting for since KR1 backed the project in an early funding round in 2017.

Commenting on the group’s largest investment activities, McDonaugh told investors: “We are pleased to have locked in some profit at good prices and we're delighted that Polkadot is further expanding the Company's staking activities as a yield-bearing asset."

Positive Outlook

McDonaugh also said KR1 is seeing huge interest flowing into numerous new projects building on Polkadot, many of which it has already supported, or currently in active discussions.