GAINS Associates
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GAINS Associates

InsurAce— Telegram AMA — March 19

On Friday, March 19, we had the pleasure to welcome to our Telegram chat:

Oliver Xie, Founder.

We asked him questions about the development of InsurAce Protocol.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Summary

InsurAce is a decentralized insurance protocol, aiming to provide reliable, robust and carefree DeFi insurance services to DeFi users, with a very low premium and sustainable investment returns.

The InsurAce platform will provide covers on smart contract cyber threats at the start which is the most demanding in the current DeFi space. InsurAce will adopt the portfolio-based design to pool all injected mutual funds into one pool and provide multiple protocol protection together.

The INSUR token is the standard token on the InsurAce platform and is based on Ethereum’s ERC20 standards and serves a variety of utility functions. Users who have the INSUR token can propose changes, vote on issues and proposals, and participate in claim assessments on the protocol.

Introduction

Q — Ayeley Commodore-Mensah from GAINS: Let’s begin by hearing a bit about you. What did you do before crypto and did you have any other previous venture in crypto?

A — Oliver from InsurAce: This is Oliver, Founder of InsurAce! So good to be here! I started to work on InsurAce project in Sept. 2020. Prior to that, I worked as CTO in one of the three Singapore-based licensed derivative exchanges. I entered the crypto space back in 2017 where I led a team to research cryptos and blockchain and gravitated towards blockchain-based Open Finance for the past few years.

About InsurAce

Q — Ayeley Commodore-Mensah from GAINS: What is InsurAce Protocol about in a few simple sentences?

A — Oliver from InsurAce: InsurAce is a decentralized insurance protocol, aiming to provide reliable, robust, and carefree DeFi insurance services to DeFi users, with a 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.

With revolutionary product design & economic mechanism, InsurAce will offer better insurance solutions for DeFi.

Q — Ayeley Commodore-Mensah from GAINS: Is InsurAce only designed for end-users or other companies that can be covered by the insurance you provide?

A — Oliver from InsurAce: The mission of InsurAce is to offer DeFi insurance products and services to users who can buy covers by using the portfolio-based coverage and also can invest to improve capital efficiency. In the future, we will be putting more effort into business development and involve more partners for cover services. So generally, we face the end-users.

Q — Ayeley Commodore-Mensah from GAINS: How many people are on the team?

A — Oliver from InsurAce: We have over 12 developers. We have a very strong team composed of veteran developers, the most experienced insurance experts, the tier-1 legal & compliance veteran as advisors, the top-notch cybersecurity experts as advisors, and the professional marketing team on board for this exciting journey.

About team info, you can also check here.

Q — Twitter user @NguyenQ32225128: It says in your whitepaper that InsurAnce will adopt new actuary-based pricing models to fairly assess the expected loss of insurance products. Can you briefly explain to us more about your pricing model and why is it suitable for this project?

A — Oliver from InsurAce: I will start with the model of traditional insurance. The insurance industry is largely an endeavour of hedging against uncertain future loss, in which the insured trade risks with the insurers by premiums via insurance contracts.

Therefore, the pricing of insurance products lies at the core of any insurance business, and InsurAce has its unique offerings here as well. Most pricing models in current blockchain-based insurance communities heavily rely on the value staked on individual protocols: the higher value staked for the specific protocol, the lower premium will be priced.

This staking-driven pricing structure fails to assess the real risk of each protocol and is very likely to significantly overestimate the premium of those less staked protocols. To substantially mitigate this issue, InsurAce will adopt new actuary-based pricing 18 / 26 models to fairly assess the expected loss of insurance products, and thereby reduce the cost and enhance the capability. The loss assessment is conducted on the portfolio level, which will consolidate portfolio level actuarial pricing and constituents’ risk scores for each individual protocol involved in the portfolio.

Q — Telegram User The Curious 👀: What do I need to purchase DeFi insurance within InsurAce Protocol? Can you detail what are the requirements for this and when do I need to pay? Do I need to hold or stake InsurAce tokens or what really?

A — Oliver from InsurAce: Visit our website and try our product, and we will see clearly how simple it is to use InsurAce to buy covers. You will only need to hold $INSUR tokens to become assessors etc.

Q — Telegram User VisiV: How can I participate in the extraction of SCR liquidity to earn the InsurAce Token (INSUR)? How will this increase the capital reserve, the coverage capacity, and the investable capital in addition to reducing the insurance premium further?

A — Oliver from InsurAce: SCR Mining is to manage the capital pool according to capital requirements and control the speed of liquidity mining; By buying cover here at InsurAce, users will help increase our capital reserve, InsurAce will offer $INSUR as rewards for the liquidity providers. 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 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.

Q — Telegram User Rosemary Bianco: On their website, they say “product accessibility” requires “KYC”, but in the “wallet-based accessibility”, they say it doesn’t have “KYC” (not necessary). My question is, why is the KYC necessary for the accessibility of the product and not for the wallet? Isn’t this somewhat contradictory?

A — Oliver from InsurAce: There are some limitations with current DeFi insurance protocols. And obviously, accessibility is one of the biggest ones facing DeFi users now. Product Accessibility => such as high premium (the premium on COVER is 20% annually at its minimum, and on nexus mutual, it could be as high as 70% too), KYC-based membership (specifically to nexus mutual) which poses lots of restrictions to users, lack of support for new DeFi protocols which are actually the ones that need to be covered most, lack of risk diversity to cover other potential types of risks.

Q — Telegram User Dies Lienas: You will lead the market by revolutionary product design and economic mechanism. Could you explain a little?

A — Oliver from InsurAce: Sure. As explained before, InsurAce has several unique features that make it revolutionary to DeFi insurance, including “0” Premium, Enriched Product Line, SCR Mining, and Sustainable Return. About the economic mechanism, thanks to the proficiency of our team as our members are top-tier professionals from traditional insurance, we are able to do innovations in our product design such as portfolio-based coverage, investment arm to help with capital efficiency, and cross-chain coverage, etc.

Token

Q — Ayeley Commodore-Mensah from GAINS: What is the token use case and how does it capture the value of the ecosystem you’re building?

A — Oliver from InsurAce: The INSUR tokens can be used in the below scenarios:

1. Mining incentives for capital provisions to the insurance pool and investment products;
2. Representation of voting rights in community governance scenarios such as claim assessment, proposal voting and etc.;
3. Eligible for fees generated by InsurAce protocol through governance participation;
4. Community incentives

With the continuous growth of InsurAce’s user base and the development of our ecosystem, we will see more values added to the INSUR token as the basis of powering the whole system.

Check more info about $INSUR on CoinGecko.

Competitive Advantage

Q — Telegram User 💕maman 💕: Can you list killer features of $INSUR that make it ahead of its competitors? What is the competitive advantage your platform has that you feel most confident about?

A — Oliver from InsurAce: Yes, I can. I can share a photo that clearly explains the advantages that InsurAce has.

Q — Twitter user @Ontortk: What is the difference between single protocol-based insurance like Nexus Mutual and portfolio-based insurance like yourselves? What are the advantages of one or the other? and Why have you decided to do it that way?

A — Oliver from InsurAce: Portfolio-based insurance is the core feature we can offer compared to any other DeFi insurance protocol.

Let’s say you’re farming on 10 different protocols, and you want to cover them, on other insurance platforms, you’ll need to buy 10 times, cost you 10 times of gas fee, 10x of time and the overall premium is much higher.

But on InsurAce, we can cover the 10 in one basket, and do the pricing, which will save your premium, save your gas fee, and save your hassle. It’s very attractive to those DeFi farmers and institutional investors.

So the reason why we create the Portfolio-based coverage is that we want our product to be more attractive to users as they will be enjoying low gas fees when selecting multiple covers. This is also a sophisticated cover type in traditional insurance.

Financial

Q — Ayeley Commodore-Mensah from GAINS: Did you raise funds so far? If so, how did you handle them? Are you planning to do any future raises?

A — Oliver from InsurAce: We did. In last year, we completed the Seed round investment supported top VCs such as DeFiance, ParaFi, Huobi DeFi labs, Hashed, Signum, etc; In Q1 this year, we closed the Strategic round, led by Alameda Research, HashKey, and several top-tier investors from Seed round continued to support us in the strategic round. The funds will be mostly used in product development and continuous improvements. Lately, we launched our testnet product. We received many good suggestions from users who participated in the test. So we will be doing a lot of development work for improvements. Also, the funds will be used for further growth of the InsurAce ecosystem as will be putting more effort into business development and user acquisition.

Let me show a picture as well. So you can see all their names here.

Security

Q — Twitter user @KevinSalom1: The fact that InsurAce is an insurer does not negate the fact that they are also a DeFi Protocol with all the risks and possible errors that this implies. So, I would like to know how secure InsurAce is. Can we sleep peacefully investing in DeFi knowing that we are backed by you?

A — Oliver from InsurAce: The mission of InsurAce is that we dedicate ourselves to building a DeFi Insurance protocol that makes insurance services reliable, secure, carefree, and accessible for all.

DeFi landscape continues its rapid growth and market demands have been increasing exponentially. According to DeFiPulse, as of today, DeFi TLV reached an all-time high of 43.71 Billion in USD.

However, the industry has been witnessing challenges and threats posed by hacking, code flaws, oracle manipulation, etc, causing huge losses of user assets.

Needless to say, the cyber-attacks have been posing significant threats to the whole DeFi ecosystem fundamentally. Besides the technical approaches to resolving this problem, insurance, by its nature, has been another effective means to manage this risk.

Business Development

Q — Ayeley Commodore-Mensah from GAINS: What stage is the project at? And what should we look forward to in the coming months?

A — Oliver from InsurAce: We just launched our testnet product a while ago. More than 12000 users participated in our test event. We received thousands of good suggestions from users after they tested our product. We will be doing a lot of improvements. Some deliveries that we will be looking at in the near future: 1, We will launch V 1.0 the official product;2, We will be supporting more top projects; 3, We will be integrating other Blockchains like Polkadot, BSC, HECO, etc to offer cross-chain coverage.

Q — Telegram User Gutierrez04: What strategies do you have in mind to make the greatest impact on the DeFi community and buy insurance at InsurAce?

A — Oliver from InsurAce: Well, we will be working on the followings: 1, Work with local communities for user’s awareness of InsurAce; 2, Continuous improvements of our product will make it the best in the industry; 3, Do more business development and involve top projects as partners to offer services for their users; 4, Our investors and backers will help with expansion and growth in various local markets.

Q — Telegram User Eberto: Through the trial version of InsurAce I got some doubts about the stakeout game, will you add some tricks or other currencies to bet? and also the claim time is very slow how do you plan to solve this? Currently what other bugs are you fixing?

A — Oliver from InsurAce: Yes, we held the testnet event and received thousands of good suggestions which will definitely help us in improving our product in various aspects including functions, user experience, UI, etc. Please stay tuned for the launch of our official product real soon!

Q — Telegram User Magdalena: Just 2 days ago InsurAce’s LBP ended, the objectives and expectations of this launch were met? InsurAce is just starting to get going, could you tell me about your next objective “cross-chain coverage”?

A — Oliver from InsurAce: Yes. Sure. The Cross-chain Coverage will be our next killer feature, that we will be integrating mainstream blockchains such as Polkadot, BSC, HECO, etc to offer cover services there too.

Thank you for coming in today. It was a very informative session with a lot to learn. Anything else you’d like to say? How do we get our hands on some INSUR tokens and where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS

Yes, after a very successful LBP, the $INSUR token is available on Uniswap now. Please follow us and join our Telegram group: Thank you! — Oliver from InsurAce

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