Given the challenges of the existing DeFi insurance protocols, InsurAce has its unique value creations to address these problems.
(1) “0” Premium
With the portfolio-based product design as a fundamental approach of risk diversification, the premium for the insurance product will be reduced by its nature. InsurAce has also developed unique pricing models to optimize the cover cost leveraging on the expertise of insurance experts. Furthermore, the investment utilities will complement the cover cost to offer ultra-low premium, which is close to Zero at its best.
(2) Enriched Product Line
Unlike the single protocol based insurance coverage in Nexus Mutual, InsurAce will uniquely offer portfolio-based insurance product to enable coverage on a basket of DeFi protocols, which will create a diversified risk management tool for the DeFi investors.
Despite the fact that Ethereum is the dominating public blockchain for DeFi protocols, other public blockchain is also stepping in with booming DeFi projects. InsurAce will offer products to cover those non-Ethereum DeFi protocols as well to benefit the decentralized space as a whole.
InsurAce plans to expand the product accessibility to a wider audience by removing the KYC process. Anyone with a digital wallet will be able to connect with the platform and fairly use the services such as buying cover, staking asset, making claims and etc.
(3) SCR Mining
Another distinctive feature for our token economy is our SCR mining programs. The participants will be able to earn the InsurAce Token (INSUR) by staking into the liquidity pool.
The mutual capitals injected through staking will be managed with rigorous risk control models to dynamically adjust the Solvency Capital Requirement (SCR) and use the secured free capital for investment, whereas the mining speed will be controlled accordingly.
(4) Sustainable Return
The low investment return has been a major challenge for Nexus Mutual since its capital return for the capital pool providers are sliced from the premiums, which is quite low compared to the benchmark yield on lending and borrowing platforms such as Compound and Aave. Such low return will in turn impede the capital injection into the capital pool, and worsen the issues such as high premium and limited capacity.
On InsurAce, customers will be able to gain returns in many ways, including: i) invest directly in the investment products per their risk appetite; ii) stake in the mutual pool to get the investment carry and InsurAce Token (INSUR) as rewards; iii) enjoy shares of the premium income. We believe such design will benefit both the insured and insurers in a sustainable way.
(5) Further Improvements
Some of the processes will also be refined to better cater customer needs, such as:
· Handle claim assessment quantitatively instead of simple Accept or Reject;
· Provide extension, incremental or transfer capabilities to existing covers;
· Enjoy discounted premium and other cost with the InsurAce Token (INSUR);
· Collaborate with other DeFi protocols to form an ecosystem to provide cross insurance, insurance syndication and etc. to benefit InsurAce customers;
· Insurance coverage marketplace.
· Expand coverage to more specific risk types such as oracle malfunction, asset volatility, flight delay, disaster and etc.
InsurAce is a decentralized insurance protocol, aiming to provide reliable, robust and carefree DeFi insurance services to the DeFi users, with very low premium and sustainable investment returns. InsurAce’s highlights include “0” Premium, Enriched Product Line, SCR Mining and Sustainable Return. InsurAce’s mission is to redefine DeFi insurance and protect users from security risks with user-friendly product accessibility and capital efficiency.
Telegram Community: https://t.me/insurace_protocol
Telegram Announcement: https://t.me/InsurAce_Channel