Decentralized Finance (DeFi) aims to offer financial services by leveraging decentralized technologies, mainly public blockchain networks, openly and transparently with universal accessibility. Since the inception of cryptocurrency, cybersecurity hacking has been one of the biggest challenges and threats to the industry.
There are quite a few infamous and shocking attacks in the crypto space, such as the Mt. Gox hack back in 2011-2014 which caused a US$460 million loss, the NiceHash hack in 2017 that caused a US$64 million loss; the Bittrex hack in 2018 that caused a US$18 million loss, etc., that have been shaking the foundation of the crypto world. Needless to say, cyber-attacks have been posing significant threats to the whole DeFi ecosystem. Besides the technical approaches to resolving this problem, insurance, by its nature, has been another effective means to manage this risk.
InsurAce is a new decentralized insurance protocol that seems to empower the risk protection infrastructure for the DeFi community. InsurAce offers portfolio-based insurance products with optimized pricing models to substantially lower the cost. It launches insurance investment functions with SCR mining programs to create sustainable returns for the participants and provide coverage for cross-chain DeFi projects to benefit the whole ecosystem.
According to the data from DeFi Pulse, there are only 3 notable insurance protocols available out of the 100 major DeFi projects selected, i.e., Nexus Mutual, Opyn, and Augur. There are some limitations on product accessibility for existing products, such as KYC-based membership, which contradicts the free and open ethos of DeFi, and limited cover capacity, which often frustrates customers when they need to buy covers for their intended protocols.
InsurAce developed unique pricing models to optimize the cover cost by leveraging the expertise of insurance experts. Furthermore, the investment utilities will complement the cover cost to offer an ultra-low premium, which is close to 0. Unlike the single protocol-based insurance coverage offered by Nexus Mutual, InsurAce will uniquely offer a portfolio-based insurance product to enable coverage on a basket of DeFi protocols, which will create a diversified risk management tool for DeFi investors.
The capital model adopted by InsurAce is referred to as the EIOPA’s Solvency II, which is the prudential regime for insurance and reinsurance undertakings in the EU. It sets out requirements applicable to insurance and reinsurance companies to ensure the adequate protection of policyholders and beneficiaries. At the core of the new regulatory framework, Solvency II is an economic risk-based approach that should enable the assessment of the “overall solvency” of insurance and reinsurance undertakings through quantitative and qualitative measures.
As an insurance protocol, InsurAce will provide two functional arms similar to those of a traditional insurance company, i.e., the insurance arm and the investment arm. The free capital in the insurance capital pool can be placed into the investment pool to gain a higher yield, while the insurance arm will protect the investment activities. These two parts will, in such a synergetic manner, provide “0” premium insurance as well as considerable investment return, forming a sustainable business model.
The platform consists of four layers, including User Layer provides the user access functions for platform users such as cover buyers, investors, risk assessors, etc.; The Operation Layer covers the various user or business operation scenarios interacting with core product functions; the Products Layer builds the core functions of the platform, such as product offering, liquidity pool, investment, pricing models, governance, etc.; and the Infrastructure Layer sets up the interactions with the Ethereum network as a base, and maintains interoperability with external oracles and cross-chain utilities.
The InsurAce platform has a standard ERC20 token, INSUR, as its governance and utility token, which is used to incentivize the participants in the ecosystem in a retroactive manner.
Who are the founders of InsurAce (INSUR)?
Oliver Xie is the founder and CEO of InsurAce. He focuses on risk financing solutions and technologies (blockchain, data, cloud, AI, etc.) for emerging risks, such as those in web3, digital assets, and cyber security. He is a seasoned venture builder and has more than 10 years of experience in financial services and technologies.
What is InsurAce (INSUR) used for?
Participants who stake tokens such as ETH, DAI, stablecoins, and other eligible tokens into the platform will get INSUR as incentives, also known as mining, which is adopted by many other DeFi projects such as Curve, YFI, Sushi Swap, etc.
InsurAce is used in community governance scenarios such as claim assessment, proposal voting, etc.
Unlike other single protocol-based platforms, where the capital pool and cover purchase are per protocol, InsurAce adopts a portfolio-based design to pool all injected mutual funds into one pool and provide multiple protocol protection together.
How is InsurAce (INSUR) unique?
Since its debut in April 2021, InsurAce.io has built a full-spectrum cross-chain product line that covers 140+ protocols, 3 CEX, and 1 IDO platform running on Ethereum, as well as Solana, BNB Smart Chain, Polygon, Fantom, Gnosis, Arbitrum, Avalanche, Harmony, Celo, Cronos, Boba, ICON, Ontology, Moonriver, Moonbeam, Bifrost, Aurora, and Optimism. InsurAce.io currently has a live product deployed on Ethereum, BNB Smart Chain (BSC), Polygon, and Avalanche.
Although Ethereum is the dominant public blockchain for DeFi protocols, another public blockchain is also stepping in with booming DeFi projects. InsurAce will offer products to cover those non-Ethereum DeFi protocols as well as to benefit the decentralized space as a whole. InsurAce plans to expand product accessibility to a wider audience by removing the KYC process. This, anyone with a digital wallet will be able to connect with the platform and fairly use the services such as buying cover, staking assets, making claims, etc.
The fundamental voting mechanism is that the INSUR token shares are held to represent voting rights, with a cap per member set to avoid concentration risk. The voting outcome will be based on factors such as the quorum, majority, voting rights, etc.
How many InsurAce (INSUR) coins are in circulation?
The total supply of InsurAce coins is 100, 000, 000 INSUR.
How is the InsurAce network secured?
InsurAce employs 3rd party independent audit companies to audit the smart contracts of InsurAce, to detect, identify, and eliminate potential contract vulnerabilities through rigorous code review, testing, and white-hat hacking before the protocol launch. In addition, the audit reports will be released to the public. They have also built security solutions to monitor the health status of the network, on-chain activities, Oracle dependencies, admin key details, etc., which will be adopted by InsurAce to surveil and enhance the platform’s security.
How do I buy InsurAce (INSUR)?
The EVER token can be used for a wide range of purposes, like staking and governance.
INSUR tokens can be easily purchased by following the following steps.
Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and buy INSUR through your trading account by swapping with BTC, ETH, or USDT pairs.
Which Cryptocurrency Wallet Supports InsurAce (INSUR)?
The PTPWallet platform supports many cryptocurrencies, with INSUR soon to be included. Because of its vast use case, PTPWallet has grown to become one of the most popular platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. The platform offers a simple user interface, is supported by both Android and iOS devices, and comes with its own mobile wallet app.
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