What is InsureDAO? a short summary.
Today, we’re going to explain the InsureDAO’s advantages in a nutshell.
If you want in-detailed understanding, I recommend reading the full whitepaper, it’s just less than 10 pages!
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 insurance without KYC.
InsureDAO covers, for example, the following events in DeFi;
💀 Hacking
⚠️Bugs
While there are many protocols offering attractive APY or returns by staking on Ethereum, there have been many painful hacking and bugs when looking back at the history of Ethereum.
In case an accident happens and damages are incurred, you can cover your losses if you are insured with InsureDAO.
Pricing by market supply and demand
As an insurance protocol for DeFi and Crypto, it is important to make insurance always available.
Especially in DeFi and Crypto markets, the condition is changing every day, and it is difficult to know the exact risk status.
The hardest part of the insurance protocol is to properly assess the risk in the changing situation and reflect it to the insurance premium. If the premiums failed to reflect the market condition, there would be a market imbalance in the supply and demand of insurance. This imbalance may cause a lack of supply of insurance when needed.
InsureDAO aims to ensure that insurance is always available by dynamically adjusting insurance prices based on market demand and supply.
Peer to pool
InsureDAO uses a peer-to-pool model, which allows insurance buyers to purchase insurance by paying a premium to the pool. The insurance provider can also receive the premium paid by the insurance buyer by locking the funds into the pool.
In exchange for generating a higher APY compared to normal lending protocols, the funds in the pool will be used to pay out the insurance buyers in case of an accident covered by the insurance.
The advantage of the peer to pool model from the insurance buyer’s point of view is that they don’t have to look for an insurance underwriter every time. This is similar to the way that Uniswap and Compound always provide liquidity thanks to the pooled exchange and lending funds.
No KYC
As a protocol, it is important to be open to anybody. InsureDAO allows anyone to create, buy, and sell insurance products regardless of their age, gender, or country. Also, this means any protocol can compose into their protocol without any permission.
Token and Governance
A core component of InsureDAO is it's native token $SURE. SURE token holders can participate in governance voting, incident claim assessment, and a portion of the circulating supply will be burnt by the buyback contract. This buyback and burn mechanism is similar to stock buyback among corporates, which benefits shareholders by market buying.
We’re planning to airdrop INSURE token. the details will be announced later in the community Discord. Stay tuned!
If you are interested, you can learn details, you can learn more on Whitepaper
Also, you can join us on Twitter or Discord! :)
Twitter: https://twitter.com/insuredao
Discord: discord.gg/8BA5f5rurq
