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Bright Union

Bright Risk Index (BRI)

Client: Bright Union

One liquid ERC-20 that packages diversified staking positions across multiple DeFi insurance protocols — Nexus Mutual, InsurAce, and Bridge Mutual — priced off live basket NAV.

Ethereum proxy · 0x5559…dd03 ↗Implementation (BrightRiskToken) · 0xa4b0…FD04 ↗

Stack & integrations

  • Solidity ^0.7
  • Ethereum
  • ERC-20 (Permit) · upgradeable
  • OpenZeppelin (AccessControl, Pausable)
  • Governance timelock
  • Nexus Mutual
  • InsurAce
  • Bridge Mutual
  • Uniswap v2 / v3
  • Truffle

Context

Bright Union is a DeFi cover aggregator. Earning yield by underwriting crypto insurance means staking capital in each protocol separately — Nexus Mutual, InsurAce, Bridge Mutual — and tracking positions, rewards, and unstaking windows on each. The Bright Risk Index (BRI) packages that into a single liquid token: deposit once, hold one ERC-20, and get diversified exposure to insurance-staking yield.

What it does — the product

BRI is an index token. One BRI is a share of a basket made up of staking positions in each insurance protocol plus an idle reserve of the base asset. Its price tracks the basket’s net asset value — the sum of what every position is worth (stake + accrued rewards) plus the idle pool — so holders earn the blended staking yield of the whole basket without managing any protocol directly.

BRI represents one share of a basket: Nexus Mutual, InsurAce, and Bridge Mutual staking positions plus an idle base reserve; minted priced off net asset value
BRI = one share of a diversified basket of insurance staking positions

Architecture

An upgradeable ERC-20 index (permit-enabled, pausable, role-gated with a governance timelock) holds an idle pool of the base asset and a set of position controllers — one adapter per protocol behind a common interface (stake · unstake · netWorth). Adding a new insurance protocol is a matter of writing a new controller, not changing the token. Controllers swap the base asset into each protocol’s token through Uniswap v2/v3 adapters, guarded by a price feed.

Component map: users deposit/redeem base against the BRI index; admin/operator governance stakes and unstakes; the index routes capital through per-protocol position controllers into Nexus Mutual, InsurAce, and Bridge Mutual, swapping via DEX adapters + price feed
Blue = governance/control · green = value (base asset / swaps)

Money flow — deposit & mint

A deposit is priced against the basket’s current NAV, so shares are fair to existing holders. A small deposit fee offsets swap spreads; an annual streaming fee accrues to the manager. The deposited base asset waits in the idle pool until the operator stakes it.

Deposit flow: user deposits the base asset, the index prices BRI off basket NAV, mints BRI shares, and holds the base idle until it is staked
Deposit — priced off NAV, minted as BRI, held idle until staked

Money flow — stake into a protocol (operator)

To put capital to work, the operator sends idle base to a position controller, which swaps it for the protocol’s token (with a price-feed check that caps slippage at ~6%) and stakes it as cover capital. The staked position then earns the protocol’s staking rewards, which flow back into the basket’s NAV.

Stake flow: the operator stakes idle capital; the index sends base to a position controller, which swaps to the protocol token within a slippage limit and stakes it as cover capital, earning staking rewards
Stake — swap within a slippage limit, then stake as cover capital

Money flow — unstake & redeem

Redemptions are paid from the idle pool, so the operator unwinds positions ahead of demand (many insurance protocols impose an unstaking waiting period). A holder burns BRI and receives the base asset for their share of NAV; a position is only removed once its worth is zero.

Redeem flow: operator calls unstake and withdraws after the waiting period, returning base to the idle pool; a user burns BRI and is paid the base asset from the idle pool
Unstake replenishes the idle pool; burning BRI pays out from it

On-chain deployment

Deployed on Ethereum mainnet as an upgradeable proxy in front of the BrightRiskToken implementation:

My contribution

Designed and built the Bright Risk Index — an upgradeable ERC-20 that packages staking positions across third-party crypto-insurance protocols (Nexus Mutual, InsurAce, Bridge Mutual) into one liquid token: the deposit/mint and burn/redeem accounting priced off live basket NAV, the position-controller adapter pattern (per-protocol stake / unstake / valuation with a price-feed slippage guard and Uniswap v2/v3 swap adapters), the deposit and streaming manager fees, role-based access control with a governance timelock and pausability, and the Ethereum-mainnet deployment (proxy + implementation).