Risk management framework DSLA Protocol has partnered with DeFi platform Avalanche to reduce users’ exposure to infrastructure risk.
According to the company’s announcement, the collaboration will enable delegators and node operators to avoid staking efficiency drops and impermanent loss of funds when staking. The first phase of the partnership will see the DSLA.network flagship application add support for AVAX Staking Agreements. The company expects to complete the integration in March 2021.
Further down the road, the DSLA core development team plans on launching the Avalanche edition of the DSLA Maxima, enabling developers to add high-throughput, risk management, and parametric insurance capabilities to their application built on Avalanche.
This will enable developers to add service level agreements (SLAs) on top of third-party services. AVAX SLAs will be able to compensate AVAX delegators for any drops in AVAX staking rewards. Parallel to that, the SLAs will also reward AVAX staking pool operators for validating blocks on Avalanche and mining DSLA rewards for liquidity providers.
“This means peace-of-mind when validating or delegating on Avalanche, providing liquidity on decentralized exchanges, and more,” Avalanche said in the announcement.