🐧Black swan events in Crypto
Tokens, exchanges, and DeFi protocols have created a whole new paradigm on economy and money. In this new paradigm, values are expressed as tokens and freely traded. The problem here is that free trades are “often” compromised by hacking or bug in a contract.
The risk of bugs and hacks in the crypto market is similar to the risk of natural disasters or financial crises in the global economy. The market will not work well if these risks are not properly managed.
Why not trade the risks and insurance against these risks just like Wall Street?
Since the transfer of tokens is free and open in Crypto, the transfer of risk and insurance should also be free and open.
🛡Enter InsureDAO, the global insurance market protocol
It is difficult to measure the risk of hacking and bugs in DeFi or other exchange services like Binance or FTX. If very few people measure the risk of these catastrophic events, it may cause the same damage in the market as AIG suffered from their incorrect risk assessment during the financial crisis in 2008.
InsureDAO uses an algorithm to measure risks based on the market’s supply and demand, enabling insurance to be traded at a fair price of the market.
Just like Uniswap and Sushiswap have successfully aggregated token prices on their AMM, insureDAO’s algorithmic premium model will enable insurance to be traded at market prices.
The InsureDAO will also be run by the community with the native token of InsureDAO called “INSURE”. INSURE token holders will vote on the protocol’s governance and whether how much should be paid out in the event of an incident.
👯♂️Join our community, token airdrop is coming.
As already mentioned, InsureDAO will be run by the community. While most of the INSURE tokens will be distributed through LiquidityMining, we will airdrop INSURE tokens to passionate community members to bootstrap the community when the product is launched on the mainnet.
INSURE token holders will have many advantages like boosting the distribution during Liquidity mining. So, we urge you to join the community if you are interested in the project.
Details about token distribution will be announced via Discord and Twitter, so follow them and keep updated.
🤝Let’s make Crypto safer together
If you want to know more details, please visit our website or join us on Discord and ask questions.
