Recapping Our Latest Twitter Spaces: Exploring New Proposals and Incentives for the Uno Community
On Tuesday, June 6th, Our Co-Founders Jaskanwar Singh and Sujith Sizon, along with our CMO Misbah SP, hosted a Twitter Spaces event, delving into UIP-1 details like eligibility for voting on Snapshot, voting power calculations, UIP-1’s intent, and more. They also covered key metrics about the Uno Re protocol and discussed future plans.
Let’s recap their conversation in under 10 minutes.
Three crucial updates to anticipate if UIP-1 is approved:
Introducing Elastic APR Mechanism (ADE)
The ADE (Automatic Dynamic Elastic) model’s purpose is simple: if approved, APRs in the protocol will auto-adjust based on generated revenue, ensuring each $UNO token reward is backed by real revenue and promoting an effective, sustainable emission roadmap.
For the ADE model to function, several additional variables must be considered.
The first variable is conservative insurance capacity, ensuring our protocol’s strength for claim payouts. It’s calculated by doubling non-$UNO capital and dividing $UNO capital by three.
This provides the minimum capacity we can sell on correlated assets. For uncorrelated assets, leverage can be higher.
The second variable is the utilization rate, showing capital usage efficiency within the protocol. It’s calculated by adding pending and active insurance coverages, then dividing by conservative insurance capacity.
Our goal is to maintain a utilization rate above 70%. With our protocol’s operation, where policy sale premiums flow to risk providers via revenue-sharing, effective capital utilization is crucial for sustainability.
A utilization rate above 70% indicates efficient capital use in our pools. With our current TVL, the expected APRs can be observed in this table:
The main objective of this model is to attract more capital when more capacity is needed for selling coverages.
With an automatic mechanism, the APR relies on policy sales performance. This strategy aims for quarterly net negative $UNO emissions, leading to deflationary tokenomics for $UNO and providing real yields to risk investors.
Furthermore, the ADE model formula sets a minimum APR at five times the average risk-free rate in DeFi (based on the average APR from top protocols).
Adding $UNO as a Payment Option for Policy Payments with a Discount
If the proposal passes, $UNO will be accepted as a payment option for policy sales, offering a 15% discount. For large payments, we will also enable clients to use the Zap feature, which will automatically swap their payment currency to $UNO and finalize the payment, allowing them to benefit from the discount.
Adding Additional Payment Options
To further increase the sustainability of the protocol, we will also add $USDT, $DAI, and $ETH as payment options alongside $UNO.
Additionally, for enhanced transparency, if the proposal passes, we’ll establish a Dune dashboard for our community to track vital protocol metrics with live updates.
How to vote on the proposal?
Community members staked in any SSIP/SSRP pools or holding veUNO can vote on the proposal by visiting the provided link. As the vote’s outcome directly impacts the APRs offered within the protocol, we encourage everyone to participate and cast their vote either in favor or against the proposal using their voting powers.
Please note that holding veUNO grants more voting power than SSIP/SSRP LPs.
This proposal will be active until June 12th, giving the community four more days to vote on the proposal from the time this article is released.
VOX Finance Policy Activation
Alongside UIP-1, we’ve introduced the Vox Finance policy activation proposal to Snapshot. If approved, $100K from our conservative capacity will be used for policy activation, and our protocol will receive the premium for Uno WatchDog service. If UIP-1 passes, the APRs in our ecosystem will increase due to the higher utilization rate from next month.
We encourage everyone to vote on the proposal. Review the details, such as the smart-contract audit, risks, coverage specifics, and collected premium, to understand the risk-reward aspects.
Remember, rewards will be distributed from the bribe pool provided by our client. Community members who vote will receive rewards from this pool.
Note: The bribe rewards are distinct from the premium generated by our protocol. This mechanism enables clients to prioritize their policy activation via community bribes.
Uno WatchDog Revenue
Even so, Uno WatchDog is in the waitlist phase for thorough due diligence, ensuring safety and uncorrelated risks. Last month, we secured 3 Uno WatchDog clients, generating $65K in revenue.
As new premiums are collected, $UNO becomes increasingly deflationary, and we focus on boosting revenue while maintaining protocol safety.
Active Community Participation
We’re empowering our community with the opportunity and responsibility to participate in Uno Re’s governance actively. We’ve introduced an incentivization program for those engaging in the Uno Governance Forum to appreciate their involvement. Activities like post-interactions, sharing a new proposal, and interaction quality are considered for governance incentives.
Moreover, general UIPs feature an incentive mechanism, recording interactions on Snapshots to reward active community members.
Uno Re V3
The automated payment system for de-peg coverage is almost complete.
Additionally, we are working with various significant partners to create an architecture for offering insurance capacity on different blockchains. More information on this development will be shared soon.
We strongly encourage anyone interested in our project to listen to the recording of the space, accessible via this link. This discussion was among the most significant we’ve had, and we look forward to further engaging with our community on these vital matters.
About UnoRe
Uno Re is building a fully secure decentralized insurance ecosystem to serve our institutional and individual clients. Despite heavy daily losses incurred by DeFi exploits, our clients can rest easy with our customizable, affordable, and convenient coverage.
Our insurance platform has sold more than $10 million in coverage across various crypto protocols and has more than $4.4 million in an active on-chain capacity, with risk underwritten for over 85 different protocols and six stablecoins on our B2C Insurance Sales dApp — The Cover Portal.
