Instant, tradeable, automated catastrophe bonds to help protect the world from natural disasters
CatX brings catastrophe bonds on-chain for the first time, allowing anyone to earn an uncorrelated yield while helping to share the burden of natural catastrophes. Issuers can get protection from the costs of hurricanes, wildfires, cyber-attacks and more while paying premiums to the bonds. Bond investors can invest in, trade the bonds and earn yield. All invested capital will be able to earn a yield through GHO/Aave, and payments are triggered automatically through UMA's optimistic oracle service. TradFi catastrophe bonds are virtually illiquid, require 250k minimum investments and are not available to retail investors. CatX's mission is to reduce the friction and barrier to this new asset class that has the potential to also help make our world safer.
The CatX contracts utilise the following primary technologies: ERC-3448 (Metaproxy), ERC-1155 (Multi Token Standard), and UMA’s Optimistic Oracle V3 (natural language statement oracle). The ERC-3448 metaproxy underpins the factory contract for the protocol and allows the abstract CatX insurance contract to be reused, with unique policies deployed as separate contracts with distinct metadata at significantly reduced gas cost. The ERC-1155 multi token standard was chosen since it best suited the requirements of multiple insurance bond types linked to a distinct insurance policy. This enables the creation of three distinct bond tokens linked to an insurance policy that can be freely traded without the gas overhead of deploying distinct ERC-20 contracts. It also allows for streamlined transfer of multiple bond purchases for investors and their secure transfer. UMA’s Optimistic Oracle V3 is the most important aspect of the protocol as it allows CatX to create a natural language statement of a claim on policies which can be verified, and if successful a claim paid out. The minimalist implementation of the metaproxy has other applications in implementing this EIP since current examples are scarce or overly complex and distract from its elegance. The underlying asset that people are able to stake is GHO through Aave. The front-end is built in Next.js. All bond contracts are stored for audit purposes on Filecoin.