NAOS Partners With Tidal to Offer DeFi Insurance Coverage for Real World Assets

3 min readSep 30, 2021


Source: NAOS Finance

NAOS Finance And Tidal Finance Collaborate To Design Commercial Loan Insurance Plans To Mitigate Financial Risks

We’re thrilled to announce the strategic partnership with Tidal Finance to customize DeFi insurance plans for real-world assets. The coverage will provide funds to repay a loan in case of default or delayed payment. The borrowers own the policy and pay the premiums with the lenders as the beneficiary. In the event of default, the insurance coverage would step in and make the loan payment up to the terms and limits of the policy.

In traditional finance, loan insurance against the risk of non-payment is an important risk management tool, and banks, lenders or investors often require this type of coverage as part of the loan arrangement. The policies offer short-midterm protection, providing coverage from 3 to 24 months, and the benefits can be used to pay off corporate loans, supply chain and equipment financings.

TIDAL is a decentralized discretionary mutual cover protocol that offers the DeFi community the ability to hedge against the failure of any DeFi protocol or asset. By directly leveraging up the reserve to cover multiple protocols at the same time, the enhanced capital efficiency attracts reserve providers while a competitive insurance premium attracts buyers. In the case of collaborating with NAOS, a reserve pool will be created specifically to insure the policy of loan default.

The NAOS-TIDAL partnership provides an additional layer of downside protection on top of Galaxy’s Beta Insurance Pool. While the Beta Insurance Pool is designed to provide coverage across the board for all assets in the Alpha Lending Pool, borrowers will have the option to purchase additional policies on Tidal to boost their credit scores on Galaxy for higher borrowing limits, lower collateralization requirements or more favorable interest rates. Through the partnership, NAOS is looking to increase overall coverage ratio as well as the coverage depth on new asset classes.

“DeFi insurance use case has been limited to smart contract hacks, but this collaboration breaks new ground to expand the use case into real world assets” Said Chad Liu, CEO of Tidal Finance. “ NAOS finance has been working with Chainlink on bringing the real-world data on chain, and Tidal is glad to be a part of offering the insurance pillar to support various financial contacts.”

Kevin Tseng, Founder of NAOS Finance, added “Insurance is a mutually beneficial instrument that adds tremendous value to both parties in the lending process. Not only are the lenders protected, borrowers will have a level playing field when negotiating terms with lenders. We’re excited to add insurance, a critical component in RWA lending, to the NAOS ecosystem.”

NAOS Finance Ecosystem Update

About Tidal Finance

Tidal Finance is the first multi-chain flexible insurance platform, working directly with companies, and the first insurance solution to launch on Polygon. The flexible insurance model allows companies to adjust their premiums on a weekly basis based on fluctuating TVLs (Total Value Locked) and evolving investment strategies. Users can buy and cover insurance purchasers and receive the highest APYs in the industry. Tidal Finance is also the first DeFi insurance provider to offer gas-free transactions for cover providers and buyers.

About NAOS Finance

NAOS Finance is a decentralized real world asset (RWA) lending protocol that facilitates the borrowing of crypto native assets by using RWA as collateral. NAOS has established a large network of corporate borrowers and is operating with financing licenses in multiple regions. In the effort of connecting CeFi with DeFi, NAOS takes an ecosystem approach and looks to engage in meaningful strategic partnerships to expand the boundary of decentralized finance.




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