Welcome to 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 any insurance without KYC.
Moreover, each insurance pool is separated on InsureDAO. That is to say, any payout from a certain insurance pool doesn’t affect other insurance pools.
InsureDAO consists of the following 3 services: InsureDAO Build; InsureDAO Market; and InsureDAO Investment (To Be Developed).
InsureDAO Build
Insurance pool creation
InsureDAO allows users to create any insurance pool like anyone can create any liquidity pool on Uniswap since InsureDAO separates insurance pools for each protocol and the risks are segregated. Therefore, any insurances, including even risky protocol insurance, will be available to buy and sell on InsureDAO.
Composable architecture
With the open insurance creation system, any new protocol can immediately build their reliability by creating insurance for itself and providing liquidity. Moreover, as each insurance pool is separated, protocols easily integrate our insurance scheme into their product.
InsureDAO Market
Dynamic pricing
InsureDAO uses an algorithm to measure risks and the pricing of premiums based on the market’s supply and demand. InsureDAO aims to ensure that insurance is always available by dynamically adjusting insurance prices based on market demand and supply.
Token reward
InsureDAO incentivise users to provide liquidity as insurance underwriter by token reward. Token allocation through Liquidity mining will continue perpetually. It provides continuous motivation for liquidity providers.
Custom risk Index
Custom risk Index consists of different insurance pools. Liquidity provider can select any index to deposit their funds based on their risk appetite. Furthermore, All index pools leverage their staked liquidity and provide them to their underlying pools, increasing the underwriter’s fee earnings while lowering insurance premiums.
InsureDAO Investment
Asset management (TBD)
InsureDAO is planning to manage provided liquidity by following any arbitrary Investment strategy which will be determined by DAO. Returns from asset management will be added to liquidity providers’ income.
Reporting
Reporting process
ReportingDAO
As the judgement module, InsureDAO delegates the authority of Insurance payment to ReportingDAO.
ReportingDAO consists of members who have INSURERPT token (InsureDAO Reporting Token), and it’s granted/burnt by The Community DAO. ReportingDAO intended to be neutral and expected to validates the incident case based on the fact and payment guideline.
INSURE token
The main purposes of the INSURE token are to incentivise liquidity providers on InsureDAO, and as many users as possible to be involved in the governance of the protocol. INSURE token will be issued permanently, and total supply will be controlled by burning mechanism.
Locking
INSURE can now be locked to receive trading fees from InsureDAO. Every pool allows the admin to collect fees. Collected fees are distributed by buying and burning INSURE tokens by the protocol.
Boosting
One of the main incentive for INSURE is the ability to boost your rewards on provided liquidity. Vote locking INSURE allows you to acquire voting power to participate in the DAO and earn a boost of up to 2.5x on the liquidity you are providing on InsureDAO.
Voting
Once INSURE holders lock their veINSURE, they can start voting on various DAO proposals, such as ReportingDAO election, and pool parameters.
Use cases
Smart contract insurance
InsureDAO provides an insurance for a loss of funds from smart contracts due to a certain incident such as a hack, bug, exploit or economic manipulation attack.
Especially, InsureDAO insurances indirect losses caused by external contracts. (e.g. if you stake to yearn.finance and the funds are re-deployed to curve.fi; you will be covered if funds are hacked/stolen/or lost on curve.fi)
Custodian insurance
InsureDAO providers an insurance for a loss of funds or non-withdrawable event from custodian services due to the custodian itself or a certain crime.