The InsureDAO DeGenesis

The InsureDAO DeGenesis has finally arrived.
Please read this article carefully to understand the novel mechanics of this event.

InsureDAO DeGenesis TL;DR

• Special thanks to Tokemak, we got support from them for launching the InsureDAO DeGenesis and adopt the same event mechanics they used.
• 6,000,000 INSURE are available in the InsureDAO DeGenesis
• Everyone will be able to claim INSURE at the same final price between $0.275 and $0.55 per INSURE
• Final price will be determined by total commitments by participants, and is capped at $0.55 once total commitments reach $3.3M
• If total commitments surpass $3.3M (up to the max cap of $6.6M), a proportional swap/the special farming split is globally applied
• Everyone’s commitments qualify for the same relative split between INSURE swap and a period of the special farming in our InsureDAO Reserve Pool
• Individual ETH addresses have max cap of $100,000 in USDC
  (1USDC is regarded as $1)
• The InsureDAO DeGenesis will have a fourteen-day commitment period during 31st January — 13th February
• There is no grace period.
• Anyone can participate in the InsureDAO DeGenesis
• There is an additional bonus to specific DeFi users for 10% of the amount each participant purchased.
• The possible outcomes of this event can be seen in the table below:

Cheat Sheet for INSURE Swap / The Special Farming %

Introduction

InsureDAO is a decentralized insurance protocol, allowing anyone to create an insurance pool easily to “Cover every single risk in DeFi space”.

You can check more detail about the protocol on our gitbook or our deck.

Welcome to InsureDAO

InsureDAO Deck.pdf

The InsureDAO DeGenesis

The protocol is kicking off with the InsureDAO DeGenesis launch, an event to secure initial liquidity for InsureDAO Reserve Pool to allow underwriters to leverage their liquidity. After the InsureDAO DeGenesis, on February 14th, InsureDAO will be launched on the Ethereum Mainnet and Arbitrum.

This is the first opportunity for users to get access to InsureDAO’s native token — INSURE. Users can lock INSURE and receive veINSURE is a unit of DAO governance voting power. veINSURE allows you to acquire voting power to participate in the DAO and earn a boosting power of up to 2.5x on the token rewards for your underwriting.

All participants will receive INSURE at the same price at the conclusion of the event. While there is no first-mover advantage, there is a maximum cap for commitments as well as a limited event duration.

The InsureDAO DeGenesis will last two weeks, beginning on Monday, January 31st at 15:00 (UTC). The USDC commitment window will be open until February 13th. Once the final price for INSURE is determined, INSURE becomes available to claim.

Participants & Additional bonus

Anyone can participate in the InsureDAO DeGenesis. For the specific group of DeFi users, however, we will give an additional bonus 10% of the amount in INSURE each participant purchased.

e.g. If you successfully claimed 10000 INSURE at the end of the InsureDAO DeGenesis, we will give 1000 INSURE to you later as an additional bonus.

InsureDAO testnet participants, and OG POAP holders are qualified for this additional bonus. Additionally, we retroactively qualifies certain users who have used at least one of the DeFi protocols on Ethereum Mainnet in the list below.

• InsureDAO testnet participants (Submitted the testnet application)
• InsureDAO OG POAP holders
• Tokemak users (TOKE stake, TOKE/ETH uniLP stake, TOKE/ETH SLP stake on official site)
• New Order users (NEWO stake, NEWO/USDC SLP stake on official site)
• Redacted users (BTRFLY stake)
• Olympus users (OHM stake)
• Curve users (CRV lock)
• Convex users (CVX lock)
• Frax users (FXS lock)
• DFX users (DFX/WETH SLP stake on official site)
• ???

Additional qualified target will be added and snapshot will be taken on January 30th before the InsureDAO DeGenesis begins.

Mechanics

• Anyone can commit USDC to be swapped into INSURE, up to the individual cap
• 1USDC is regarded as $1
• There is no grace period.
• There is no minimum amount a participant can commit
• There are several maximum caps on the event’s commitments. This is in order to ensure healthy price discovery and promote a fair distribution of INSURE at the launch of the protocol:

1. Individual Ethereum addresses can commit a maximum amount of 100,000 USDC.
2. A total value of $3.3M across all participants’ wallets can be swapped to INSURE.
3. The total value that can be committed across all participants’ wallets is capped at $6.6M, at which point no additional commitments will be accepted.

• INSURE will undergo limited price discovery from $0.275 and up to $0.55 until the total commitments surpass $3.3M. After commitments surpasses $3.3M, the price of INSURE will be fixed at $0.55.

INSURE Price Varies Based on Total Event Commitments

• As commitments surpass $3.3M, a global swap/farm ratio is applied across all commitments. Participants are able to choose whether to enter the special INSURE farming in the InsureDAO Reserve Pool with their committed USDC that do not get swapped for INSURE or just withdraw unswapped USDC once the event ends.
• The globally applied split between swap and farm for committed USDC can vary from 100% swap / 0% farm (up to $3.3M total commitments) to 50% swap / 50% farm (at $6.6M total commitments).
• The Max cap of $6.6M can be surpassed by the last deposit. If that happened, we would refund the redundant value to the last depositor.

Swap / Farm Split Varies Based on Total Commitments

Special Farming

We set the special farming limited for the InsureDAO DeGenesis participants. The special farming will last for 2 weeks on Ethereum Mainnet since the InsureDAO launch.

The participants, entering the special farming in the InsureDAO Reserve Pool with their unswapped liquidity, will earn additional returns limited to them. The rewards will be claimable after the special farming period on our UI.

It’s important to note that the special INSURE farming period of the InsureDAO Reserve Pool will offer an attractive returns, giving participants a chance to acquire more INSURE, adding to the normal farming rewards, and effectively lower their cost basis.

Potential Outcomes

The end state conversion price of INSURE and potential and a global swap/farm ratio is determined by total commitments by all participants at the end of the InsureDAO DeGenesis.

There are three potential outcomes of the InsureDAO DeGenesis, outlined below.

Outcome One:

If total commitments by the end of the DeGenesis are less than or equal to $1.65M USD:

• 100% of commitment swapped for INSURE
• Conversion rate is $0.275 per INSURE

Outcome One Example:

An individual commits $10,000 and the total USD value of commitments at the end of the commitment period is $1.5M. Then:

100% of individual commitments will be swapped for INSURE

INSURE conversion rate: $0.275 per INSURE

Outcome Two:

If total commitments by the end of the InsureDAO DeGenesis is between $1.65M USD and $3.3M USD:

• 100% of commitment swapped for INSURE
• Conversion rate is between $0.275 and $0.55 per INSURE, according to the equation below:

Total Commitments / 6,000,000 INSURE

Outcome Two Example:

An individual commits $10,000 and total USD value of commitments at the end of the commitment period is $3M. Then:

100% of individual commitments will be swapped for INSURE

INSURE conversion rate: $0.5 per INSURE according to the equation below

3,000,000/6,000,000 INSURE = INSURE price

Outcome Three:

If total commitments by the end of the InsureDAO DeGenesis is between $3.3M USD and $6.6M USD:

3.3M / Total commitments * 100

% of commitment swapped for INSURE for all participants:

(Total commitments — 3.3M) / Total Commitments * 100

% of commitment is eligible for the special INSURE farming for all participants:

• Conversion rate is $0.55 per INSURE

Outcome Three Example:

An individual commits $10,000 and total USD value of commitments at the end of the commitment period is $4.4M. Then:

75% of individual commitments will be swapped for INSURE ($7,500)

3,300,000/4,400,000 = 75%

25% of individual commitments will be eligible for the special farming: 25% Farm ($2,500)

(4,400,000–3,300,000)/4,400,000 = 25%

INSURE conversion rate: $0.55 per INSURE

The max split possible at the full commitment cap of $6.6M is a 50/50 split of INSURE swap and the special farming eligibility in the InsureDAO Reserve Pool.

How to participate

The live InsureDAO DeGenesis site will be shared in the Discord, on Twitter, and on Telegram on Monday, January 31th.

On the InsureDAO DeGenesis website, you need to agree to the Terms of Participation, and you’ll be prompted to connect your browser wallet (Metamask and others).

Once your wallet is connected, you can see fields to commit USDC on the left side of the website.

You will be asked for wallet transactions for approval and commitment. Once your funds are committed, you’ll see the following successful transaction message:

When the event has concluded, users will be redirected from the InsureDAO DeGenesis website to the main InsureDAO website:

Here’s the list what you’ll be able to do after the Mainnet & Arbitrum launch:

With INSURE

1. Claim your INSURE that was successfully swapped
2. Lock that INSURE into InsureDAO’s locking contract, thereby boosting the INSURE rewards for underwriting mining
3. Add Uniswap V3 LP and participate in our liquidity mining program

With USDC

1. Migrate any unswapped USDC to a period of the special farming in the InsureDAO Reserve Pool, or simply withdraw those additional USDC
2. Deposit USDC into insurance pools and participate in our underwriting mining
3. Buy insurances for protocols that you want to be covered

Join our community

Finally, we’re going to launch InsureDAO with the InsureDAO DeGenesis event. If you have any questions about the InsureDAO DeGenesis, come join to our Discord and visit the #insuredao-degenesis channel.

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 lockers. We will launch InsureDAO on Mainnet and Arbitrum this February.

If you are interested in learning more, check out our white paper.

InsureDAO

Also, you can join us on Twitter, Discord, or Telegram! :)

Twitter: https://twitter.com/insuredao
Discord: discord.gg/8BA5f5rurq
Telegram: http://t.me/InsureDAO

Legal Disclaimers

This article doesn’t constitute an offer to purchase INSURE Tokens (the “Token”) and financial advice. All or part of this article is not legal, financial, tax or other professional advice, and should not be considered as such. Before deciding to buy, sell, or recover Token, you should seek independent expert advice. You are responsible for evaluations and decision-making made during the Token purchase, sale, or collection process. The Token is not intended to constitute securities of any form, units in a business trust, units in a collective investment scheme or any other form of investment in any jurisdiction. To the maximum permitted by law, we are not liable for any liability arising from the adverse effects or consequences of Token. This article describes our current schedule for the InsureDAO. While we intend to attempt to realize this schedule, please recognize that it is dependent on quite a number of factors. We do not guarantee, represent or warrant any of the schedule in this article. Before submitting your ETH address or participating in the DeGenesis, you must affirm that you are not located, incorporated, or a citizen or resident of:the United States of America (including its territories), Canada, Democratic people’s Republic of Korea, Cuba, Syria, Iran, Sudan, Republic of crimea, Japan, People’s Republic of China, or any state, country, or jurisdiction where it would be illegal according to applicable law for participation.