UNION bringing smart contract protection to Prosper’s cross-chain prediction platform » CryptoNinjas
UNION, a full-stack DeFi protection platform, today announced a new partnership with Prosper, a cross-chain prediction market and hedging platform, to bring UNION’s suite of protection products to Prosper.
The partnership will encompass the adoption of UNION’s smart contract protection for Prosper’s liquidity pools, alongside C-OP, to improve the capital efficiency of its prediction markets.
“Just like UNION’s protection products are not constrained by protocols, data inputs to calibrate pricing and solvency ratios for UNION’s products are not either. The wisdom-of-the-masses, synthesized and signaled real-time by Prosper, is a valuable alternative data set. Alternative data sets have proven their effectiveness in TradFi risk management over the past decade. The same holds true for DeFi and UNION is excited to incorporate Proper’s prediction signals to strengthen our product suite.”
– John Liu, CPO of UNION
Prosper is a non-custodial, cross-chain prediction market and hedging platform that solves one of decentralized prediction markets’ biggest problems — liquidity. Prosper deploys a unique technology for on-chain liquidity aggregation that relies on binary models for liquidity provision across blockchains.
A short-term prediction market model enables randomized results for custom pools with liquidity providers, offering access to high APRs and a free maximum insurance fund.
Core features of Prosper also include bet insurance, user-owned predictions and options, and fiat integration — further augmenting capital inflows to its custom pools.
With more liquidity, prediction markets can become more accurate at forecasting events. Achieving this means offering attractive liquidity incentives to liquidity providers, enabling leverage for user positions, and pooling cross-chain capital. With UNION’s smart contract protection, Prosper’s liquidity pools can benefit from the dynamic adjustment of UNION’s pricing model to modify risk parameters that protect the prediction pools’ solvency while optimizing leverage.
Safer pools paired with Prosper’s prediction insurance system mean users can wager on the outcome, not the safety of their own wagers. This also translates to Prosper pools’ ability to better predict security performance across DeFi, where harnessing the intelligence of the masses can be used to reconcile the mispricing of insurance pools for smart contract risk within DeFi protocols.
”We are excited to work together with the UNN team on the security improvements of Prosper platform. The bundled protection will allow Prosper users to be safe while interacting with Prosper smart contacts. In addition to that, it will allow us to attract more participants for the binary liquidity program that we are currently exploring. Bundled protection with Prosper’s prediction insurance will allow us to become the most secured prediction platform ever!”
– Iva Wisher, Co-Founder and COO of Prosper predict
Additionally, Prosper’s exploration of C-OP to improve the capital efficiency of its pools will help to expand liquidity further. As levered users can better protect themselves from downside price volatility, the prospects of using margin for prediction outcomes are enhanced — a significant draw for capital-aware users seeking to profit from mispriced outcomes.