We are pleased to announce that we have partnered with Union, a platform offering bundled protection and single-source risk management solutions, to bring cross-chain DeFi protection to Router. Union will deploy collateral optimization (C-OP) instruments and bundled insurance coverage for Router Protocol and its users.
While the DeFi industry has been on an almost constant parabolic rise, it still faces massive problems of over-collateralization (OC) and capital efficiency limitations. With more and more DeFi protocols entering the market, providing more efficient use of collateral has become one of the most important conversations in the industry. Many believe that the standard 150% over-collateralization ratio deployed on most lending protocols has a detrimental ripple effect on everything from yields and risks to the composability of DeFi.
This is where Union steps in.
The protocol addresses the problem of over-collateralization by introducing Collateral Optimization (C-OP), a collateral protection product that embeds directly within its own lending protocol and creates a composable “lego block” for other blockchain protocols. In addition to smart contract protection that has become a must-have for DeFi, the protocol addresses the problem of over-collateralization.
By employing Union’s smart contract and over-collateralization protection, Router Protocol can benefit from safer and more efficient liquidity provision across blockchain networks.
“We are excited to work together with the team behind Union to introduce security improvements to Router Protocol, Ramani Ramachandran, the CEO of Router Protocol said. “The bundled protection will allow users of the Router Protocol to be safe while utilizing our cross-chain bridges to interact with other blockchains on the market.”
Adding Union’s C-OP to Router will enable the protocol to improve the capital efficiency of its pools, a move that will ultimately expand the liquidity on the platform. Individual users and protocols utilizing Router’s bridges can rest assured that they will be protected against downside price volatility.
UNION is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. DeFi participants manage their multi-layer risks across smart contracts and protocols in one scalable system. UNION decreases the entry barriers for retail users and lays the foundation for institutional investors. UNION’s full-stack DeFi protection is inclusive, composable, and brings battle-tested capital and pricing models from TradFi to the DeFi ecosystem.
Telegram Announcements: https://t.me/UNNFinanceANN
About Router Protocol
Router Protocol is building a suite of cross-chain liquidity infra primitives that aims to seamlessly provide bridging infrastructure between current and emerging Layer 1 and Layer 2 blockchain solutions.
Telegram announcements: https://t.me/router_ann