Sponsor: The Pillars of Risk Management

These accredited entities leverage the full power of the BQ Risk Infrastructure, enabling them to create legally compliant pools tailored to their specific risk profiles and strategies. By doing so, Sponsor plays a crucial role in driving risk management within the Bitcoin and DeFi ecosystems, offering a dynamic and adaptable approach to insurance.

Sponsor has the flexibility to select the base assets for securing their pools—whether it’s Bitcoin, project-specific tokens, or Liquid Staking Tokens (LSTs)—and define the Annual Percentage Yield (APY) for investors. They can choose from predefined risk and APY templates or build custom pools, selecting specific risks and asset classes that align with their vision. This allows Sponsor to craft unique insurance products that not only cover a broad range of risks but also provide attractive earning opportunities for liquidity providers and stakers.

Once a sponsor sets up a new pool, it is listed in the BQ Marketplace, where it can attract liquidity and participation from the broader ecosystem. Sponsor also has the ability to assign their own Liquid Insurance Token (LIT) ticker, providing a tradable asset that represents stakers’ contributions. This flexibility transforms the traditional insurance model, making it more fluid and capital-efficient, while offering participants enhanced liquidity and yield opportunities.

By introducing Sponsor, BQ Labs opens up an entirely new economic validation service within the insurance and investment landscape. This framework enables Sponsor to manage risk more effectively while generating substantial earning potential. Curators of these pools can maximize their returns by managing risk exposure, offering competitive yields, and fostering liquidity within their pools, all while contributing to the security of the ecosystem.

For instance, protocols like Bitcoin LRT/LST (xyzBTC) can be used as underwriting capital in a sponsor pool, unlocking new yield opportunities for token holders. Participants in these pools not only benefit from the yield generated but also receive Liquid Insurance Tokens (LITs), which can be used in DeFi markets, adding liquidity and tradability to their holdings.

Through the risk infrastructure framework, BQ Labs introduces an innovative approach to decentralized insurance, transforming how risk is managed and offering unprecedented financial and strategic opportunities for Sponsor. This evolution provides both flexibility and reward potential, positioning Sponsor as a key driver of growth in the Bitcoin and DeFi ecosystems.

Any interesting projects, LRT/LST protocols wishing to be part of risk infrastructure, please reach out to us via Telegram or Discord.