Ethereum-based (ETH) decentralized finance, or DeFi, risk direction market Risk Harbor volition before long take over control of Terra'southward Ozone Protocol, co-ordinate to a press release published on Thursday.

Ozone is a decentralized insurance mechanism that provides coverage in the event of technical failures on the Terra DeFi ecosystem. The latter is a dual-token platform that features its governance token LUNA and stablecoin Terra USD (UST), which has an exchange rate of 1:one with the United States dollar. UST has no underlying USD reserves bankroll information technology. Instead, it'due south collateralized via an algorithm by LUNA, and users tin can earn rewards by using LUNA to fix UST's exchange charge per unit. The network has gained meaning momentum in terms of total value locked.

Using Ozone, insurers who deposit UST can receive coverage when smart contracts do non execute properly on the Terra network — such as when users cannot withdraw their money from UST savings accounts in the Terra Ballast Protocol. Similarly, Risk Harbor operates an Ethereum DeFi hub that enables coin holders to cover their DeFi assets for an upfront premium. Meanwhile, other users deed equally underwriters that deposit their at-risk capital letter in various insurance collateral pools to earn rewards.

Do Kwon, co-founder and CEO of Terraform Labs, had the following to say regarding the development:

"Chance Harbor's talented and ambitious team has extensive feel working with DeFi protocols in the blossoming risk direction infinite, having created 1 of the leading permissionless coverage marketplaces on Ethereum. We're thrilled for the Terra community to have Adventure Harbor take the reins of Ozone and pioneer a capital-efficient and decentralized risk direction marketplace for the Terra ecosystem at large."

Ozone is currently undergoing an audit from blockchain security firms such equally Oak Security and Certik. Pending the results of a Terra community governance vote, Ozone volition exist transferred to Risk Harbor's developers for maintenance and management.