Apart from insuring DeFi protocols and their investors against possible losses, InsurAce also offers its own promising investment opportunities.
InsurAce.io is a leading decentralized insurance protocol that enables the provision of reliable, robust, and secure DeFi insurance services. InsurAce.io provides portfolio-based insurance solutions with optimal pricing models that significantly reduce insurance costs. Additionally, it has investment activities that include ensuring mining programs to ensure participants earn a sustainable return and providing coverage for cross-chain DeFi initiatives that benefit the whole DeFi ecosystem.
InsurAce employs the decentralized autonomous organization (DAO) governance system presently used by the majority of DeFi projects, with voting and incentive mechanisms based on INSUR.
The governance framework is divided into two components:
The essential voting mechanism is the right to vote, which is limited to one vote per member to minimize concentration issues. Typically, it proceeds as follows:
Like traditional insurance companies, the project’s business model is composed of two compatible functional arms:
Due to the interoperability of these arms, excess capital in the insurance capital pools can be transferred to the investment pools to earn a better yield, while the insurance portal protects investment activity. Additionally, the investment arm’s income will supplement the insurance arm’s premium, lowering the cost of cover for clients.
This sustainable business strategy enables the platform to offer “zero” premium insurance while still providing a considerable investment return. The insurance premium revenue will be utilized to cover development and operating costs, community incentives, and token buybacks.
Launched in October 2020, InsurAce protocol aims to address these challenges through the following unique value creations:
“0” Premium: InsurAce offers innovative pricing methods and portfolio-centric solutions to help customers reduce their insurance costs. This results in a large reduction in premium, which is often close to “0” at its best.
Enriched Product Line: By enabling coverage of a range of DeFi protocols and bypassing the KYC process, the project seeks to give end-users conveniently accessible and adaptable insurance protection and to make its products available to a larger audience.
Liquidity Mining: InsurAce allows investors, insurers, and insured to earn InsurAce token (INSUR) by staking into insurance and investment pools. This will greatly enhance the capital pool, cover capacity, and investable capital, while also further lowering the insurance premium.
Sustainable Return: InsurAce users will be able to make returns by investing in InsurAce’s investment products based on their risk tolerance, staking in the mutual pool to earn INSUR tokens as rewards, and receiving shares of the premium income.
Additionally, the protocol interfaces with other DeFi protocols to provide cross insurance, insurance syndication, and other similar capabilities.
Currently, InsurAce insures the following risk categories:
Updating
In exchange for locking in INSUR tokens, users with veINSUR will access the majority of:
▪ Boosted revenue sharing and future token emissions
▪ Governance power for InsurAce’s future expansion and risk buffer
allocations
▪ Discounts to reduce cover costs
The project is backed by DeFiance Capital, Parafi Capital, Alameda Research, Hashkey Group, Huobi DeFiLabs, Hashed, IOSG, and Signum Capital, among others.
It has already partnered with a number of firms, including Alpha Finance Lab, mStable, Autofarm, Bella, Dora Factory, 88mph, dHEDGE, and Huobi Global.
As the DeFi ecosystem grows, the demand for insurance protocols and dependable insurance services increases as well. By spreading the risk over 50 protocols, acquiring premiums from each protocol, and underwriting mining, InsurAce strives to be substantial enough to cover any hacks or smart contract vulnerabilities that may occur on the covered protocols.
Find more information:
Website: https://www.insurace.io/
Twitter: https://twitter.com/InsurAce_io
Telegram: https://t.me/insurace_protocol
Discord: https://discord.com/invite/vCZMjuH69F
Reddit: https://www.reddit.com/r/InsurAce/
Medium: https://insurace-protocol.medium.com/
Blog: https://blog.insurace.io/
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.
Marshall
Coincu Ventures
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