How does InsurAce protocol work?

Business Model

As an insurance protocol, InsurAce will provide two function arms similar as the traditional insurance company, i.e., the insurance arm and investment arm. The free capital in the insurance capital pool can be placed into the investment pool to gain higher yield, while the insurance arm will provide protection to the investment activities. Meanwhile, the yield at the investment side will in turn complement the premium at the insurance side, and further reduce the cover cost for customers. These two parts will in such a synergetic manner to provide “0” premium insurance as well as considerable investment return, forming a sustainable business model.

Business Architecture Design

In this model, InsurAce as a platform, will generate revenues from the insurance premium as well as a minor portion of carry from the investment returns. Those revenues will be used in areas such as operation / development costs, tokens buybacks, community incentives, ecosystem collaborations and etc.

Typical Use Cases

There are many use cases on the InsurAce protocol, we will introduce three most typical cases for common InsurAce users and one platform level use case to further illustrate how InsurAce works.

Typical Use Cases

(1) Investor

As an investor, Bob invests asset via investment portal by choosing the investment portfolio with different risk and return appetite. His investment will be covered by an almost “0” cost insurance and he will gain investment returns and INSUR token as incentives

(2) Mary as an Insurer

As an insurer of the mutual, Mary stakes assets into the mutual insurance pool, gains INSUR token as incentives according to the SCR mining and investment returns.

(3) Jack as an Insured

As an insurance customer, Jack accesses through the insurance portal to buy single or multiple insurance covers and gets claims when the policy is triggered.

(4) Synergy between the two Arms

Investors, insurers and insured will all benefit from the interactions between the investment and insurance arms at the platform level.

· The insurance arm provides coverages to the investment arm;

· The free capital in the insurance pool will be used for investment managed by the investment arm;

· The investment yield will be returned to the insurance side to incentivize the insurers and insureds.

About InsurAce

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.

Social Links

Telegram Community:

Telegram Announcement:





Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top