Introducing vlINSURE
The resolution passed for the first time at InsureDAO as a DAO, where rewards will be distributed to these vlINSURE holders. So we would like to introduce vlINSURE as one of the utilities of the INSURE token.
Overview
This is, simply put, the equivalent of convex’s cvxCRV token, which is a token you get for permanently locking your INSURE token. Put another way, this is a tokenized veINSURE.
- The conversion from INSURE to vlINSURE is irreversible
- The INSURE collected here will be locked for 4 years.
- This contract is up-gradable and will be implemented in the future with an official bribe market and a boost optimized underwriting pool.
veINSURE vs vlINSURE
There are now two kinds of INSURE derivatives, so let us wrap up those two in the comparison table below.
is token?
vlINSURE is an ERC20 compatible token. The latest proposal is rewarding to this token.
withdrawable?
No, vlINSURE cannot revert back to INSURE. We may have a secondary market of vlINSURE and INSURE in the future as same as cvxCRV. This enables vlINSURE holders to exit by selling to INSURE, but there won’t be an official market for now.
can boost your farming?
No. veINSURE is always required to boost your earnings.
Same as underwriting farming, you can boost your earning from this vlINSURE staking by locking INSURE for veINSURE.
So, it is good to separate your INSURE into two, one for vlINSURE and the other for veINSURE to maximize your earnings. (Boost calculator makes this calculation a lot easier, but this will be implemented later.)
gauge voting?
vlINSURE cannot be used for gauge voting. veINSURE is required to vote for the gauge to increase INSURE allocation to the gauge.
Voting power
You cannot get a voting power from vlINSURE at this moment, while veINSURE gives a voting power to you.
rewarded?
Yes, you can earn INSURE by staking vlINSURE into the gauge.
This is the UI on the testnet version.
In this interface, you can do converting INSURE for vlINSURE, and staking vlINSURE into the gauge at once.
Future upgradability
vlINSURE is an upgradable contract and is planned to be upgraded in the future to implement the way to utilize the aggregated veINSURE.
Currently, there are ideas of
- Bribe market
Protocols can reward users who do gauge voting for the protocol.
This way, protocols can increase their own pool’s allocation and can expect more TVL on his pool, thus more charm on insurance and bug bounty to prevent incidents.
- Optimized Boosted Pool
Users just deposit USDC into this pool. Boost will be applied automatically and users don’t have to deal with it. Part of the earning from the boost will be the vlINSURE holder’s earning.
Conclusion
As Convex has proven, the combination of the gauge system and this aggregation system has nice synergy: on the side of the gauge, the number of locks and average lock duration is greatly improved, and protocol can utilize their token efficiently to increase incentives on their insurance pool.
About InsureDAO
InsureDAO is a decentralized insurance protocol, allowing anyone to create an insurance pool easily to “Cover every single risk in DeFi space”. InsureDAO provides an insurance builder kit and insurance market. Additionally, we offer the lending function to INSURE token stakers.
If you are interested in learning more, check out our LP.
Also, you can join us on Twitter, Discord, or Telegram! :)
Twitter: https://twitter.com/insuredao
Discord: discord.gg/8BA5f5rurq
Telegram: https://t.me/InsureDAO
