UNION, an open and “decentralized” tech platform that’s focused on reducing the risks, costs, and other barriers to the decentralized finance (DeFi) market, has secured more than $3.9 million in capital from Alameda Research, Spark Digital Capital, AAM, Solidity Ventures, 3 Commas, Alpha Chain, Black Edge Capital and several other investors.
UNION’s management noted that they’re planning an official launch within the next few months. They’ll be offering a DeFi platform that features a risk management and protection framework.
The total value locked into DeFi contracts is estimated at around $12.57 billion, according to date site DeFi Pulse. According to UNION, the current DeFi ecosystem needs “broader, scalable protection products” so that it can continue to grow in a sustainable manner.
As mentioned in the announcement:
“UNION is releasing a set of building blocks leveraging risk-reducing concepts from centralized finance that [could potentially] form a cornerstone of the DeFi ecosystem, preparing the space for its next phase of exponential growth. The project intends to launch with a protocol and set of tools that help individuals and institutions access DeFi, while effectively addressing cost and risk considerations.”
As noted in the release, these DeFi-focused tools include:
- Bundled protection with different layers of protection (e.g., Layer 1 risk, smart contract risk, exposure risk, transaction completion risk).
- A “truly decentralized” protection platform not bound by a “members only” model, without KYC requirements and paired with an effective governance process.
- A “decentralized” secondary protection market to manage risk.
Michael Beck, project lead at UNION, said that one of the main goals is to implement effective protection products and a supporting ecosystem that “lets people participating in DeFi sleep well at night.”
“We’re amazed at the incredible support our project has received and we’re excited about the future and our role in strengthening the DeFi marketplace.”
UNION is planning to launch a platform with “baked in” protection products for DeFi. It will also offer a secondary market for their line of protection products that will support coverage across the global DeFi markets.