1 month after Phase 1. The hedging engine is proven. Now we scale.
Phase 2 Vision
Phase 1 establishes Mithril with 5 flagship markets. Phase 2 expands coverage to 10+ additional protocols, transforming Mithril from a proof-of-concept into Solana’s comprehensive insurance layer.Expansion Targets
Phase 2 markets will cover the next tier of critical Solana infrastructure:Lending Protocols
MarginFi, Solend, and emerging lenders. Protect against bad debt cascades.
Perpetual DEXs
Drift, Zeta, and perp platforms. Hedge against liquidation engine failures.
Liquid Staking
Additional LST providers beyond Sanctum. Diversified staking protection.
Infrastructure
Bridges, oracles, and critical middleware. Systemic risk coverage.
Community-Driven Selection
Phase 2 introduces governance. $MITH holders vote on which protocols get insurance markets:1
Nomination Period
Community nominates protocols for coverage. Anyone can propose.
2
Due Diligence
Mithril team publishes risk assessments for nominated protocols.
3
$MITH Voting
Token holders vote. Top 10 protocols by vote weight get markets.
4
Market Deployment
Winning protocols receive insurance markets within 2 weeks of vote.
Why governance? The community knows where risk lives. $MITH holders have skin in the game—they’ll vote for markets that matter.
Enhanced Market Types
Phase 2 introduces new market structures beyond simple TVL drops:| Market Type | Example | Use Case |
|---|---|---|
| TVL Drop | ”Protocol X TVL -50%“ | General protocol health |
| Depeg Events | ”Token Y falls below $0.90” | Stablecoin & LST protection |
| Exploit Markets | ”Protocol Z suffers >$10M exploit” | Smart contract risk |
| Governance Events | ”Token W inflation vote passes” | Tokenomics protection |
Treasury Scaling
Phase 2 requires expanded treasury operations:| Allocation | Phase 1 | Phase 2 |
|---|---|---|
| Active Markets | 5 | 15+ |
| Treasury Deployment | 2% $MITH | 5% $MITH |
| Daily Buyback Rate | Standard | 2x (increased volume) |
Liquidity Mining 2.0
Phase 2 launches enhanced incentives for market participants:Early Hedger Rewards
First 1000 hedgers in new markets earn bonus $MITH.
LP Incentives
Liquidity providers earn yield + $MITH emissions.
Referral Program
Bring new users, earn % of their trading fees in $MITH.
Governance Rewards
Active voters earn $MITH for participation.
Phase 2 Timeline
| Milestone | Target |
|---|---|
| Phase 1 Completion | Month 1 |
| Governance Launch | Month 1 + 1 week |
| Protocol Nominations | Month 1 + 2 weeks |
| Community Voting | Month 1 + 3 weeks |
| Phase 2 Market Deployment | Month 2 |
| Full Phase 2 Operations | Month 2 + 2 weeks |
Success Metrics
Phase 2 success is measured by:TVL Protected
Total value of positions hedged via Mithril markets.
Unique Hedgers
Number of wallets holding YES positions.
Market Volume
Daily trading volume across all insurance markets.
The Road to Phase 3
Phase 2 establishes Mithril as Solana’s insurance standard. Phase 3 takes it further.Phase 3: The Future
Full ecosystem integration. Cross-chain expansion. The endgame.