Definex: the decentralised insurer that can cover your back during market volatility

With the explosion of decentralised finance products hitting the market have come a variety of decentralised loan providers. However, most products have critical flaws, such as low fund utilisation due to over-collateralisation and significant risk issues caused by protocol design. 

To address these issues, Definex (, a new decentralised loan and insurance ecosystem, uses insurance protocols to provide a balance between fund security and efficiency. The project was awarded the Polka Grant by blockchain protocol Polkadot in 2019 and is ready for launch this year.

Decentralised loan products generally work by providing collateral, which can be liquidated in times of market volatility, even though the collateral may later soar above its initial price. However, with an insurance-based model, the insurer can give an extra buffer amount to cover your back.

Insurance premium prices will depend largely on the volatility rate, term structure, and liquidation price. The larger the spread between the liquidation and pledge prices, the smaller the premium; higher premiums will be charged where the spread is smaller.

Definex will launch its TestNet in Q3 of 2021, followed by the launch of its deposit, lending, and clearing functions. Other loan and insurance functions will then be live towards the end of the year. After this, Definex will work on cross-platform compatibility and improve its governance, including mechanisms to add new assets, change interest rate models, parameters, variables, and more.

Looking to advertise? We will gladly help spread the word about your project, company, or service. CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions:

Amaury Reynolds

Published by
Amaury Reynolds
Tags: DeFiDefiinex

Recent Posts

Chipz Betting Platform Announces NFT Marketplace and UFC Champion Nick Diaz as Ambassador

The global gambling industry is in the midst of being completely reinvented thanks to the…

2 hours ago

XBE Finance amplifies yield on $12bn Curve and Convex Liquidity and Convex finance have fundamentally changed the way Decentralised Finance yield mechanisms work by…

2 hours ago

Panther and Polygon are Taking Privacy to New Heights in DeFi

Midtown, Gibraltar, 21st September, 2021, Panther Protocol creates private scalable infrastructure for smart contract platforms,…

3 hours ago

Amasa Raises $1.5M Led by Animoca Brands to Build Micro Investment Streaming App

Sydney, Australia, 21st September, 2021, Amasa is proud to announce the successful closure of a…

4 hours ago

Portal Secures $8.5M from Coinbase, Ventures Arrington XRP Capital and Others to Build Bitcoin-Based DeFi Platform

San Francisco, United States, 21st September, 2021, Portal ,a self-hosted Layer 2 wallet and true…

4 hours ago

SHIB Price Moves Up Again As Shiba Inu Community Expands To Over 900k Followers

All cryptocurrency markets attempt to mount a comeback after the absolute carnage of yesterday. Chinese…

6 hours ago