Solace.Fi
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Solace.Fi

Solace Partners with Celer Network to Improve Cross-Chain Underwriting Capabilities

Solace, the decentralized insurance protocol offering Wallet Coverage on Polygon and Ethereum, announced a partnership with Celer Network to streamline its underwriting pool management process across chains.

Thanks to Celer Network and their Inter-chain Message (IM) SDK, Solace can aggregate its underwriting capacity data across chains. This partnership continues the long-term plans to design a single unit infrastructure for Solace across chains — starting with the underwriting pool, and moving into the risk assessment process.

Aggregating the Underwriting Pool

Solace’s first implementation of the Celer IM SDK will be to aggregate the sums of all underwriting pools within each chain with more gas efficiency. Specifically, what will change is how we update the CoverageDataProvider smart contract.

Previously, to update the maxCover() function of the smart contract (i.e. the function that returns total underwriting capacity), it was required to be updated for each individual chain. If underwriting capacity was updated to a new value on one chain, it required several calls to the function in order to update the correct maxCover() for each chain.

Consider the example below:

There is an Ethereum underwriting pool, and it has $1 million of liquidity. The maxCover() function returns $1 million.

Now, let’s add the Polygon underwriting pool. This pool has $1 million of liquidity as well. To update maxCover() and have the same correct values on both chains, the steps are:

  1. Update Polygon’s pool value to CoverageDataProvider for Polygon
  2. Add Ethereum’s pool value to CoverageDataProvider for Polygon
  3. Add Polygon’s pool value to CoverageDataProvider for Ethereum

This example only displays two underwriting pools, whereas Solace already has three between Ethereum, Polygon, and Aurora, with plans to grow on more chains.

How Underwriting Capacity works with Celer IM

Solace utilizes Celer’s IM interoperability protocol to update Solace’s underwriting information across chains. The three core pieces of the new Celer infrastructure are the wrapper contract, the Message Bus Contract, and the State Guardian Network (SGN). Let’s break it down a bit more:

It’s a lot at once, but we’ll go over this high level overview of the integration.

Steps

  1. CoverageDataProviderWrapper is called to either set() or remove() an underwriting capacity value via admin or data script.
  2. CoverageDataProviderWrapper updates the CoverageDataProvider contract with either its set() or remove() functions.
  3. The operation is encoded into a message and sends that to the Message Bus Contract.
  4. The Message Bus Contract sends the message to the SGN. Once the SGN validates the message, it’s sent to the Executor Service.
  5. The Executor Service fetches the message.
  6. The Executor Service calls the destination chain’s Message Bus Contract and hands over the fetched message.
  7. The Message Bus Contract calls the destination chain’s CoverageDataProviderWrapper and calls the executeMessage() function.
  8. CoverageDataProviderWrapper decodes the message and calls the destination chain’s CoverageDataProvider to execute the operation.

About Celer

Celer is a blockchain interoperability protocol enabling a one-click user experience accessing tokens, DeFi, GameFi, NFTs, governance, privacy solutions and more across multiple chains. Developers can build inter-chain-native dApps using the Celer Inter-chain Message SDK to gain access to efficient liquidity utilization, coherent application logic, and shared states. Users of Celer-enabled dApps will enjoy the benefits of a diverse multi-blockchain ecosystem with the simplicity of a single-transaction UX, all from a single chain.

Follow Celer Network:
Website | Telegram | Twitter | Github | Discord |

About Solace

Solace is a decentralized insurance protocol that offers Solace Wallet Coverage, the first and only DeFi insurance product that allows a user to insure positions for over 180 DeFi protocols across Ethereum and Polygon with one policy. The coverage is personalized to your wallet’s portfolio, even if you change DeFi positions daily. Token holders can stake $SOLACE to earn emissions of policy sales and token distribution. Because Solace owns its underwriting capital, payouts are made by Solace, and stakers are never liquidated during a claim.

Website | Medium | Twitter | Discord | Docs | Notion | Github | Telegram

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