Spotlight: Neptune Mutual Multiversion Marketplace

5 min read

An article explaining the multi-version feature of the Neptune Mutual marketplace.

Neptune Mutual is a DeFi insurance project offering peace of mind by protecting your funds that are on different protocols. DeFi, CeFi, and Metaverse projects create cover pools in our marketplace from which their users can purchase covers.

In the rapidly changing landscape of DeFi, projects constantly upgrade and release newer versions with feature updates and security enhancements. And that's where Neptune Mutual’s multi-version marketplace comes into play. Neptune Mutual offers projects to create cover pools for different versions of their products for users' convenience and better protection.

In this blog, we'll delve into the unique feature of Neptune Mutual's multi-version marketplace, an offering aiming to provide fund protection for users of different versions of cover products. Let’s start with the reasons for version upgrades in protocols.

Why Do DeFi Projects Upgrade to New Versions?#

The reasons for project version upgrades generally come down to feature addition, technology update, security fixes, and UI improvement. Let’s briefly discuss why DeFi projects launch new versions of their products.

  • Security Enhancements: Security is important for DeFi apps as they handle users' funds, transactions, and sensitive data. With new versions, projects include security audits, bug fixes, smart contract vulnerability resolution, and new security measures to protect against potential exploits.
  • Smart Contract Improvements: The new upgrades could have improvements in smart contracts to optimize the functions, enhance the projects’ efficiency, and handle transaction rates that increase with the growing user base.
  • Additional Features: Upgrades in DeFi projects may also be necessary to introduce new features or improve the existing ones. Feature upgrades could mean different things depending on projects, such as better user interfaces, additional token support, more yielding opportunities, adoption of layer 2s, interoperability, scalability, and so on.

As mentioned earlier, blockchain is an industry that’s moving at a rapid pace, and innovating is the only way to keep up.

With version upgrades, projects not only renovate their protocols but also provide what their community wants. If you’re not updating your protocol, chances are your competitors are upgrading theirs. So, your users will switch to the projects that are offering them the most value.

Upgrading your project ensures that you’ll stay in your game for a longer period of time.

Neptune Mutual as a Multi-version Marketplace#

Neptune Mutual is a cover marketplace, meaning we let projects create cover pools in our application from which users can purchase covers to protect their investments.

Our aim, as a DeFi insurance protocol, is to offer protection for all DeFi users, investors, and stakeholders in the blockchain space. Users might be involved in several protocols—in different versions of those protocols, to be specific. Users can migrate to upgraded versions to benefit from the new features that come with the upgrade. Or, they might stick to the previous versions for several reasons, like preference, compatibility with other applications, ease of use, etc.

Catering to the specific coverage needs of users familiar with different versions of projects is what we have focused on. We also understand that, as a DeFi project, you would want to protect every user in your community, regardless of which version they’re using.

Neptune Mutual offers a multi-version marketplace to let projects create cover pools for any version of their dApp. This will allow users to purchase cover for the specific version of the protocol they are using.

The Benefits of Neptune Mutual’s Multi-Version Cover Marketplace#

The multi-version feature offering of Neptune Mutual is clearly beneficial to both cover purchasers and the projects creating cover pools.

It eliminates the compulsion for projects to offer a single coverage plan for all versions; projects have the choice of creating cover pools for different versions of a product. The cover policies of different versions of a project may be priced differently depending on their code structure, security reports, activities, or history. Thus, having coverage for different versions of the products feels more customized for a project.

The same goes for the cover purchasers; they can tailor their coverage needs as per their needs. It allows users to purchase coverage for the version they are using, not one-size-fits-all coverage that would work for all versions.

Projects with Different Versions in the Neptune Mutual Marketplace#

Currently, we have two projects in our cover marketplace with cover pools for different versions: Uniswap and AAVE. Let’s see what versions of these projects are available and what differences they have.

Two Uniswap Cover Products in the Neptune Mutual Marketplace#

Neptune Mutual Marketplace has cover policies for two different versions of Uniswap: V2 and V3. They are available on the Ethereum and Arbitrum chains.

Uniswap is a popular decentralized exchange platform and one of the top DeFi projects in terms of trading volume. It runs on Ethereum and is compatible with all ERC-20 tokens.

When it comes to the differences between versions V2 and V3, V3 offers several improvements. V3 offers greater liquidity depth and less slippage for traders.

Uniswap V3 has developed a way of dividing prices into intervals called ticks. When providing liquidity, your input price will always round to the nearest tick. If the price crosses multiple ticks, then the network fees will be higher in V3. However, most of the swaps shouldn’t cross multiple ticks, so the network fees are expected to be lower.

Two Aave Cover Products in the Neptune Mutual Marketplace#

The Aave protocol also has two versions, V2 and V3 available in the Neptune Mutual Marketplace for users to purchase covers. They are available on both the Ethereum and Arbitrum chains.

Aave is also an Ethereum-based DeFi protocol that facilitates lending and borrowing digital assets. Users can deposit tokens and cryptos on the platform to borrow other currencies.

Aave V3 has several feature upgrades from its previous version. It has support for all ERC-20 tokens, while V2 supports only a handful of them. V3 introduced features like a single-borrowable asset model to limit borrowing and make it secure. Similarly, features like portal, isolation mode, and dynamic interest rates enhance the capabilities of Aave and make it more capable than its previous versions.

Neptune Mutual Cover Marketplace#

From this article, we understood that DeFi projects launch new upgrades in order to add features, resolve security issues, and improve their projects overall. Neptune Mutual offers a multi-version marketplace, letting projects create cover pools for different versions of their protocols.

Note that Neptune Mutual is a parametric cover marketplace. This means our community evaluates the incidents and resolves them if they are deemed to have triggered the predefined parameters. This results in faster payouts compared to the individual loss claim process.

Our cover marketplace is available on the chains EthereumArbitrum, and BNB Smart Chain. Be sure to check it out and protect your funds.

If you are a project founder, reach us through the contact page to discuss creating a cover pool for your protocol.