What is InsureDAO?
InsureDAO is a peer to pool insurance market protocol on Ethereum. The operation and management of the protocol are controlled by the DAO, and anyone with access to Ethereum can create, purchase, and underwrite any insurance without KYC.
Moreover, each insurance pool is separated on InsureDAO. That is to say, any payout from a certain insurance pool doesn’t affect other insurance pools.
InsureDAO consists of the following 3 services: InsureDAO Build; InsureDAO Market; and InsureDAO Investment (To Be Developed).
Insurance pool creation
InsureDAO allows users to create any insurance pool like anyone can create any liquidity pool on Uniswap since InsureDAO separates insurance pools for each protocol and the risks are segregated. Therefore, any insurances, including even risky protocol insurance, will be available to buy and sell on InsureDAO.
With the open insurance creation system, any new protocol can immediately build their reliability by creating insurance for itself and providing liquidity. Moreover, as each insurance pool is separated, protocols easily integrate our insurance scheme into their product.
InsureDAO uses an algorithm to measure risks and the pricing of premiums based on the market’s supply and demand. InsureDAO aims to ensure that insurance is always available by dynamically adjusting insurance prices based on market demand and supply.
InsureDAO incentivise users to provide liquidity as insurance underwriter by token reward. Token allocation through Liquidity mining will continue perpetually. It provides continuous motivation for liquidity providers.
Custom risk Index
Custom risk Index consists of different insurance pools. Liquidity provider can select any index to deposit their funds based on their risk appetite. Furthermore, All index pools leverage their staked liquidity and provide them to their underlying pools, increasing the underwriter’s fee earnings while lowering insurance premiums.
Asset management (TBD)
InsureDAO is planning to manage provided liquidity by following any arbitrary Investment strategy which will be determined by DAO. Returns from asset management will be added to liquidity providers’ income.
Good project. Enjoy with me !