Collateral Pay joins Uno Re as its latest partner, following Bridge Mutual, Orion Protocol, Tidal Finance, Frontier, Raze Network, and PolkaCover.
Collateral is the first platform that enables users to leverage their DeFi-based digital assets without the need for a loan drawdown facility, saving time and making everyday payments feasible.
Some of the biggest benefits provided by Collateral Pay include:
Collateral Merchant: Facilitates merchants to access a new community of crypto holders to sell their products and services with the assurance of receiving the Fiat seamlessly in the event of any unpredictable loss.
Collateral Pay: With the Collateral App, users can use their crypto assets as collateral to pay for goods and services. Users scan a QR code, lock their crypto as collateral, and the merchant receives funds from Collateral and pays back the balance.
Collateral Save: Users can enjoy a passive income stream by staking their crypto assets in smart contracts, which are lent to borrowers, and an APY is received for offering this service.
Collateral Govern: Collateral, as a decentralized platform, will run through a Governance System with token holders participating in the decision processes within the Protocol.
Collateral Loan: Users get an option to access finance for larger purchases where merchants aren’t involved in the payment process. Customers will be offered instant loans with the lowest Collateral To Value (CTV) in the market.
Uno Re’s collaboration with Collateral Pay will benefit users in the following ways:
Collateral Pay as the payment gateway for Uno Re
Uno Re will be utilizing Collateral Pay’s payment gateway to facilitate instant purchases of insurance policies for all the insurance partners. The users will use their preferred mode of crypto payment (such as ETH or BTC) to purchase their insurance covers by putting up 50% collateral against the reinsurance premium. This will give users the flexibility to redeem their collateralized crypto assets (BTC or ETH) from the smart contracts once the original premium amount is paid back.
Uno Re as the Reinsurer
Uno Re will be the reinsurance provider for the Smart Contract Insurance cover, which will be provided to the users of Collateral Pay to insure the smart contracts which are used to store their collateral amounts (in BTC or ETH). Collateral Pay will be covered under the XOL (Excess of Loss) cover provided by Uno Re. This will provide an additional layer of security to Collateral Pay’s users in the event of a smart contract hack.
“There is a long way to go before cryptocurrencies become the preferred method of payment for goods and services and by passionately supporting projects like Collateral Pay, we are able to help bridge this gap. Our collaboration will provide users an enhanced experience while processing payments within our platform.”
— Sujith Sizon, CTO and Co-Founder of UnoRe
“We are delighted to make this strategic partnership announcement with UnoRe. What I love about this partnership is that it had a dual offering. Not only will Collateral Pay act as the Genx Payment Gateway for UnoRe but UnoRe will also provide the Smart Contract insurance cover as well. It is an ideal solution for both, forwarding thinking companies. Coupled with the fact that we are both utilising the Polkadot ecosystem makes for very very exciting times ahead for both companies.”
— Chris Longden, CEO & Co Founder of Collateral Pay
About Uno Re:
Uno Re will be the world’s first decentralized reinsurance platform powered by Polkadot, allowing the community to invest and trade in ‘risk’ and receive sizable returns on their investments in one of the safest asset classes in the world. The platform will break barriers to entry for the retail investor by doing away with the historic pre-requisite of absurdly high capital generally needed to invest into the market while also introducing much-needed transparency into the industry as a whole. Uno Re will also allow the community to propose innovative insurance products to the space, thus propelling a new generation of Insurtech companies powered by the Uno Re ecosystem.
About Collateral Pay
Collateral Pay is a Polkadot-based decentralized payment gateway that lets users collateralize crypto to facilitate payment for goods and services. Powered by a P2P network of borrowers and lenders, the Protocol also allows users to store, stake, loan, and save digital assets, with lenders receiving an APY in return.