MATTEREUM & UNION FINANCE to Provide Decentralized Risk Management
for High Value Physical Assets
Mattereum’s Asset Passport has transformed digital trade by allowing for transferable proofs of digital ownership for physical assets like real estate and gold. Every NFT backed by a Mattereum Asset Passport is paired to its real-world counterpart and ensures authenticity via several certifier-backed warranties. These warranties include a Physical Description Warranty, a Warranty of Digital Ownership and an NFT Carbon Offset Warranty, and all provide legally binding mechanisms for dispute resolution in 170 jurisdictions. It is possible to add other warranties covering any aspect of an asset, should that be required to meet the needs of a particular asset class, making the Mattereum system a universal bridge to the blockchain for all physical assets. Mattereum’s Asset Passport is now being used to back NFTs issued by companies trading in Wine, Gold, Art, historic musical Instruments, and Real Estate, but can be used for any asset.
Over the past two years UNION has developed a scalable permissionless infrastructure that includes a series of modules for capital pools, dynamic pricing, and governance for managing coverage risk. These structured risk products allow users to either purchase protection from event risk or fund liquidity to collect premiums.
Since Mattereum and UNION announced their partnership in 2021, the companies have been building a risk management solution for asset protection that allows holders of NFTs backed by Mattereum Asset Passports protection from issues of provenance and authenticity associated with the underlying real-world goods the Asset Passport represents.
UNION’s Protection Pools provide indemnification / liability protection for parties assessing the value of covered goods on Mattereum. This tiered coverage encompasses the Asset Passport’s warranties with liquidity sourced from UNION’s Protection Pools. Holders of an NFT backed by a Mattereum Asset Passport can directly interact with the Protection Pool contract by tendering stablecoins for uUNN (Union’s policy tokens). Liquidity Providers (LPs) provide stablecoins for pUNN benefit pool tokens. The LPs receive a pro rata share of all premiums paid into the pool.
The initial Risk Management solutions for Mattereum Asset Passport backed NFTs will be rolled out in three phases – Off-Chain, Hybrid, and On-Chain. All three phases will utilize UNION’s on-chain Protection Pools but will differ on the dispute resolution mechanism.
Off-Chain Resolution
The holder of a Mattereum Asset Passport-backed NFT purchases uUNN tokens on-chain and the LPs provide liquidity on-chain. The key difference with off-chain resolution pools is that the physical asset tied to the NFT is in secure escrow. If a Claim is triggered in one of the initial pools, the funds in question are immediately locked into the Pool. Pursuant to both the Mattereum and UNION Terms and Conditions, the claim is sent to expedited arbitration in the United Kingdom. The Arbitrator will review the fact-specific circumstances and the supporting legal documents and render a decision on the protection claim. The resulting legally binding decision from the Arbitrator will be served on the party who submitted the claim and UNION. If the party who submitted the claim is adjudicated to be correct, they will receive the funds from the Protection Pool. The Arbitrator’s decision can also be enforced against the tangible asset securing the NFT if necessary.
Hybrid Resolution
The holder of a Mattereum Asset Passport backed NFT purchases uUNN tokens on-chain and the LPs provide liquidity on-chain. If a Claim is triggered in one of the initial pools, the funds in question are immediately locked into the Pool. Similar to an escrow account, the funds are frozen pending a legal order. Pursuant to both the Mattereum and UNION Terms and Conditions, the claim is sent to expedited arbitration in the United Kingdom. The Arbitrator will review the fact-specific circumstances and the supporting legal documents and render a decision on the protection claim. The resulting legally binding decision from the Arbitrator will be served on the party who submitted the claim and UNION. The Arbitrator orders the protection pool or escrow account to turn over funds based on the decision on the claim.
On-Chain Resolution
The holder of a Mattereum Asset Passport backed NFT purchases uUNN tokens on-chain and the LPs provide liquidity on-chain. Claims are submitted via UNION’s established claim framework. Holders of UNION’s governance token review the submitted documentation and vote to determine the outcome of the claim.
The emerging economy of web3 and cyber-physical finance is an exciting frontier. We are inspired deeply by the work Mattereum does to populate and expand the horizons of the metaverse through the creation of non-fungible, robust, enforceable entitlements. At UNION we believe our composable architecture is the premier mechanism for building protections that scale into the diverse requirements of web3 users and NFT holders.
About Mattereum
London-based Mattereum was established in 2017 by a trans-disciplinary team with a track record in designing and launching nation state-level infrastructure and headed by former Ethereum release coordinator Vinay Gupta. Mattereum is the global leader in designing systems for digitally representing and trading valuable real-world assets including fine art, gold, and real estate.
More at: http://www.mattereum.com
Twitter: https://twitter.com/mattereum
Telegram: https://t.me/mattereum
About UNION
UNION is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. DeFi participants manage their multi-layer risks across smart contracts and protocols in one scalable system. UNION decreases the entry barriers for retail users and lays the foundation for institutional investors. UNION’s full-stack DeFi protection is inclusive, composable, and brings battle-tested capital and pricing models from TradFi to the DeFi ecosystem.
Website: https://www.unn.finance/
Twitter: https://twitter.com/unnfinance
Telegram: https://t.me/UNNFinance
Telegram: https://t.me/UNNFinanceANN
Disclaimers
- This announcement is for informational purposes only and is not an offer to participate. It contains a number of forward looking statements about features and functionality, which may be subject to change or availability. As such, specifically, To-Be-Determined (TBD) features and functionality are expected available on the basis of future release schedules, priorities, technical considerations, and market realities.
- Never send virtual assets to a smart contract you cannot afford to lose.
- This announcement does not constitute financial advice.
- UNION is not an insurance company and UNION does not sell policies of insurance.
- UNION is not an issuer of CDOs.
- We are in a rapid development phase, and the screens may or may not look like these in final product. Some of the numbers shown are placeholders.
- Nothing in this announcement shall be deemed to constitute a prospectus of any sort, a solicitation for investment or investment advice nor does it in any way pertain to an offering or a solicitation of an offer to buy any securities in any jurisdiction.
- Nothing contained in this announcement is or may be relied upon as a promise, representation or undertaking as to the future performance or policies of UNION.
