BQ Protocol

The BQ Protocol developed by BQ Labs is a decentralized insurance solution that fundamentally redefines risk management for the Bitcoin ecosystem. Designed to mitigate a wide array of risks such as smart contract vulnerabilities, slashing incidents, wrapped bitcoin assets, stablecoin depegging, and bridge exploits, it offers comprehensive insurance products that enhance both individual security and the broader resilience of the Bitcoin network.

At the core of BQ protocol is its Risk Infrastructure, where Sponsors create custom insurance pools. These pools are tailored to specific assets and risks, allowing sponsors to define coverage terms based on their own needs. Stakers provide liquidity to these pools in return for Liquid Insurance Tokens (LITs), which transforms insurance as a liquid asset class, where underwriters can trade the LITs pegged to their insurance pools across DeFi and get additional yield and restaking rewards. Proposers or Cover buyers, can purchase customized coverage to protect their Bitcoin-related activities, from DeFi projects to Bitcoin Layer 2 solutions. The process is simple: users connect their wallets, and acquire coverage through an intuitive interface. TIn the event of a claim, the DAO’s Risk Assessment team conducts a thorough evaluation, assisted by audit and risk experts who investigate claims based on on-chain as well as off-chain data. Valid claims are processed quickly, with payouts completed within three days. To ensure transparency, the protocol incentivizes challengers to scrutinize claims, rewarding them for identifying fraudulent activities, thus promoting a system of accountability.

BQ Labs’ insurance solutions extend beyond individual projects, offering coverage across the entire Bitcoin ecosystem, including Layer 2 platforms, DeFi projects, and stablecoin protocols. By continuously adapting to the evolving needs of the Bitcoin network, BQ Labs provides a flexible, secure, and efficient insurance model that sets a new standard for decentralized risk management.

This protocol not only offers protection but also fosters a trust-based ecosystem, empowering participants to engage confidently in Bitcoin’s growing financial landscape.