Here is a transcript from our most recent AMA for our community held on 8th December 10am EST in our Telegram Group
D, [8 Dec 2021 at 11:03:11]:
Hi Everyone,
Thanks for joining us today for an AMA. It will only be myself today, Dan Thomson, Director of Marketing & Business Development.
The format of this AMA is a little different than usual. And is closer to a community update.
We have some rewards for questions, but the questions had to be sent in before this AMA to our Twitter.
I will try and answer as many questions as I can.
Feel free to send questions when I open up the group after the pre-submitted questions.
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For anyone who doest know me already…
I’m Dan Thomson, the Director of Business Development and Marketing for InsurAce. I am originally from London, have lived in Spain previously and now based in the Americas. I have a background in growing companies across Europe and have been in crypto since 2015 when I bought my first Bitcoin. Since then I have gone on to launch one of Europe’s first crypto Index Funds based out of Gibraltar, and then moved into DeFi which is when I came across InsurAce and the DeFi insurance sector.
I’ve been with the team since April, joining just ahead of the Mainnet Launch on Ethereum
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I think with the current development of InsurAce holders (1424 on the Smart Chain network, 325 on…
I think with the current development of InsurAce holders (1424 on the Smart Chain network, 325 on the Polygon network & 5277 on the Ethereum network), the following is just a simple analysis for…
I want to say welcome to all of our new community members.
We had a big increase this week across many social media platforms thanks to our airdrop.
The airdrop distribution will be later this month. We had over 25,000 submissions, but only the first 500 valid entries will receive a reward.
A special reward will go to this comment on our Blog: https://medium.com/p/e3b3ba7efc34
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We recently put out an update on what we have achieved in the last 6 months. If you havent seen it, check it out here.
It’s some seriously impressive numbers. What’s more impressive is that in the last 6 weeks since this report, we’ve covered an additional $50m in DeFi Assets
The growth of InsurAce has been nothing short of extraordinary.
We are fast catching up to Nexus in terms of amount of protocols covered, coverage, and our growth is faster than any other insurance protocol out there.
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We understand this may not have been reflected in the Token Price of $INSUR.
This is something we are working hard to rectify for our community, users and investors.
We have identified some key issues with our tokenomics that we hope to address with an upcoming V2 launch.
This is later than expected as we have been working on something extra special that we hope to announce at the end of the year or early January which will benefit ALL insurace community members.
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Going forward we will try and do an AMA / Community update like this once a month so that everyone has their chance to ask about the project including updates, and give suggestions for us to look into.
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The future looks bright for InsurAce, and DeFi insurance as a whole.
Messari just launched this report which is an incredible document to read and completely FREE.
https://messari.io/crypto-theses-for-2022
It highlights that there are over $250bn locked in DEFI assets (more like $300 now!)
It also comments that there have been several high profile attacks this year totalling almost $3bn (up from $120m in 2020)
Which they say means that 2022 is the year for Insurance Protocols to really come into their own
You may have noticed we made some updates to our website: InsurAce.io
If not, check it out and let us know what you think!
Users should check out our underwriting mining (staking), for some tasty tasty APYs 40+%. If you stake with us there is a calculation you can do to work out that you can actually mitigate the cost of the insurance altogether, because the returns from your stake will be higher than your insurance costs.
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Ok ok, enough of me rambling. Let’s get on to some questions.
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https://twitter.com/Rizsky182/status/1468298612400558082?s=20
Q: Many projects promise a long-term plan, big mission and great success in future but never release any working product or revenue. What makes your project diferent with these projects? Could you share some big achievements that you get in 2021?
This is a question that we get a lot, it is the justification for creating an insurance protocol in the first place. We are a business and need to generate revenues.
So far we have generated just under $1m in revenues in the last 6 months selling insurance. So we have proven we can generate revenues from selling insurance.
These revnues are from new and repeat customers.
Soon we will launch our investment platform that will allow for stakers to invest with us to create additional pools of capital which can be re-invested with our partners and other yield generating protocols therefore adding additional revenue streams.
We have sold out of our initial capacity on some protocols and look to increase capacity soon so we can offer more insurance and generate higher revenues
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Hitesh Pahuja
@InsurAce_io @vagrantcrypto #InsurAceAMA @Vipinkhadase There have been a series of high-profile hacks in recent months, is this something you are concerned about? How have you secured the protocol thus far?
https://twitter.com/hitesh_pahuja/status/1467798863192858629?s=20
There have been a series of high-profile hacks in recent months, is this something you are concerned about? How have you secured the protocol thus far?
Security Incidents in November
Summary of hacks in November related to cryptocurrency.
Please do read our report on recent hacks in DeFi here: https://blog.insurace.io/security-incidents-in-november-e4bcb39dd7f9
We are not open source as of yet with our V1 and our code is extremely secure, built by some of the best web3 and crypto developers.
So whilst hacks are always an afterthought, we are extremely careful with everything we do. We have two audits on the code and will look to do a third with the new V2 launch.
Further to this we have partnered with Auditing firm Hacken.io who will helping us to not only improve our risk assessments but also secure our protocol overall.
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Dori⚡️ Tuan
@InsurAce_io @vagrantcrypto To help my understanding, can you tell me what plans are set in motion to add value the token? Can you share InsurAce vision for decentralized finance (DEFI)? What features are built into to support DEFI? #InsurAceAMA
https://twitter.com/trinhcrypto1997/status/1467705360341340163?s=20
To help my understanding, can you tell me what plans are set in motion to add value the token? Can you share InsurAce vision for decentralized finance (DEFI)? What features are built into to support DEFI?
Normally we wouldnt answer questions about Token and Price movement in AMAs as we are usually focussed on building, not on shilling.
We are exploring many options to help improve the tokenomics for $INSUR to help stabilise and improve the price.
This includes:
– Improving the functionality as a Governance Token, so more votes other than just on claims
– Use for insurance payments
– Discounts for holders
– Discounts for stakers of INSUR
– Selected rewards for INSUR holders
– Bonded tokens for borrowing
– Pools on yield generating partners for returns in other tokens.
These may not all happen but are all in the works.
Other than the token itself we continue to build, we hope to have over 100 protocols listed on the app by the end of the year, with over $1m in premiums sold
As well as other high-profile partnerships, new exchange listings and new insurance products like NFT insurance, rug pull insurance etc
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https://twitter.com/trinhcrypto1997/status/1467705277063450630?s=20
Why do you think Defi users need insurance covers in blockchain? And how do you convince people to insured thier assets with your company?
D, [8 Dec 2021 at 11:34:49]:
If the recent hacks arent evidence enough for insurance needs then the basic maths should be.
Let’s look at traditional banking right now… you can deposit funds in a savings account, and earn maybe 1% annually.
Or in a stock index fund for 7% if you’re lucky.
Now we take a protocol like Anchor. Offering 19% annual returns on UST stablecoin deposits.
That’s pretty great. But what if Anchor gets hacked? What if UST loses its peg? Your funds are lost and unlikely to be recovered.
This is where our insurance services come in best in the simplest example.
You can insure against both of these events for around 4% annually.
This means that on a stablecoin deposit, you are practically guaranteed a 15% annual return. Without having to do anything. With complete peace of mind thanks to the insurance coverage.
That is just smart investing.
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On another example, in DeFi 2.0, you can find returns of 7,000% with protocols like Olympus.
So to insure your assets for a few % seems like common sense
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📈 Moonboy Nguyen🚀 buyer of dips
@InsurAce_io @vagrantcrypto What factors will InsurAce consider when checking claims for legitimacy? I ask because a client might lose all his funds out of greed and then run to insurance as an ever present backup. How is such a claim going to be treated? #InsurAceAMA
https://twitter.com/moonboy_jack9/status/1467704959332347906?s=20
What factors will InsurAce consider when checking claims for legitimacy? I ask because a client might lose all his funds out of greed and then run to insurance as an ever present backup. How is such a claim going to be treated?
When we check claims we check the on-chain data.
This is fairly objective in terms of hacks and stablecoin de-peg events.
We check:
– the wallet validity
– The insurance coverage
– Verify the hack with the protocol
– Check that the exploit is something we actually cover (see recent twitter thread about BadgerDAO front-end hack)
We do not currently have market volatility insurance although we are working on it.
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Hanh My🌿🔻🔻
@InsurAce_io @vagrantcrypto There are many insurance company available in the market such as Nexus mutual, Cover. What is your advantages over them and what is InsurAce advantages? #InsurAceAMA
https://twitter.com/Sammy123vn/status/1467703818657751043?s=20
There are many insurance company available in the market such as Nexus mutual, Cover. What is your advantages over them and what is InsurAce advantages?
InsurAce is a leader in DeFi insurance, we are only six months since we went live on our mainnet and we are the only protocol to have deployed on both eth and bsc smart chains as well as Polygon and Avalanche. This comes after we launched our multi-chain services allowing for users to insure their assets on 9 other chains like Fantom, Solana, and Arbitrum.
We have no KYC.
We offer the lowest insurance premiums on the market, up to 60% cheaper than our competitors and up to 50% less on gas fees too, by using our portfolio based insurance model. You can insure all your bags together instead of separately to make these huge savings.
Also, our governance model is different from our competitors. We have advice from insurance experts who help to govern claims and insurance services that we offer to allow for a more streamlined and knowledgeable decision making process when it comes to both offering insurance and also processing claims.
Fundamentally, all DeFi insurance protocols offer similar services, protection against bad actors in the space. There is a huge addressable market and the sentiment between us is generally one of collaboration and cooperation not competition.
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That is the end of the pre-submitted questions on twitter. Each will receive a reward and we will reach out to them on twitter for wallet addresses.
I will now open up the group to any other questions from our community and answer as many as I can in the next 20 mins.
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John, [8 Dec 2021 at 11:42:15]:
What gives the value of $INSUR ? What is the role of it in your ecosystem? Could you please mention some advantages of holding $INSUR in the long-term?
and what is your target till end of Q2 of 2022
@vagrantcrypto
John, [8 Dec 2021 at 11:42:34]:
@vagrantcrypto
Has #INSUR been Audited if yes then by whom and if no so when are you going to make it happen and which platform is on your priority list to get Audited
Mehmet, [8 Dec 2021 at 11:42:48]:
What kind of security agreement do you have regarding the projects? What advantages do you offer them?
Özgür, [8 Dec 2021 at 11:43:18]:
Usually, more emphasis is placed on talking about the “long-term vision and mission,” but the long is made up of many shorts. Considering that a healthy development will be step-by-step, could you please tell us about your short-term goals and the areas where you are currently making the most effort?
D, [8 Dec 2021 at 11:43:22]:
It is a governance token to vote on claims.
also used heaviliy for rewards, but as per an earlier answer we are working on improving this
DB, [8 Dec 2021 at 11:43:26]:
It seems there is a large demand from the community for insurance, but this demand tends to be concentrated in a few protocols like aave and anchor. However, it seems insurace is more focused on looking for a wide spread of protocols to cover than focusing on increasing coverage for popular existing protocols significantly. Could you explain why this seems to be the focus since the more popular a platform is, the more money it attracts and hence selling opportunities for insurace are much better I would imagine.
D, [8 Dec 2021 at 11:43:38]:
yes we have two audits, they can be found in docs.insurace.io
D, [8 Dec 2021 at 11:44:12]:
It is free for protocols to get listed.
The advantage is that they have insurance options for their users to buy
Mehmet, [8 Dec 2021 at 11:44:31]:
Thank you
D, [8 Dec 2021 at 11:44:51]:
I think I’ve gone over a lot of our short term goals in previous questions here.
Long term goals are to make crypto safer for everyone.
Mya Nguyen, [8 Dec 2021 at 11:45:06]:
For a project development first of all main priority is having enough fund. Do your team financially capable to run this project? Do you have enough fund for it’s developement Can you tell us that how your project generate the profit?
D, [8 Dec 2021 at 11:48:57]:
Yes it’s a great question.
As part of Decentralised insurance we try and offer insurance on as many protocols on as many different chains, with as many different prodcuts as possible to spread the risk.
Other insurance protocols have per-protocol pools which allows them to increase rewards on individual protocols for underwriters to increase capaicty on individual protocols.
Our approach is better for the long term and has less conflict of interest in the event of claim, but it does mean we run into capacity issues.
These are mostly due to concentration of cover.
If we are sold out on coverage of 3–4 protocols and not much on other protocols then if those 3–4 were to be hacked it would wipe out available funds if we allocated more capacity to them.
So we have to spread available capacity to avoid this concentration risk.
This is also something we are looking to address in multiple ways:
– Aggregating cover across multiple chains
– Reinsurance
– Increased Staking
– New chain deployments for new staking pools
– Increased sales on other protocols
D, [8 Dec 2021 at 11:50:24]:
Yes, we raised $4m in pre and public sales last year, and have already sold around $1m in coverage.
We have significant token reserves for rewards, and may look to fundraise for the upcoming mega cycle of defi insurance very soon.
