decentralized insurance protocol that allows you to buy coverage for your digital assets
We are connecting liquidity providers (looking to earn yield) and consumers (looking to buy crypto insurance) via decentralized risk pools. Liquidity providers provide capital and receive tokens proportional to their overall contributions. The risk pool has an insurance policy associated to it that dictates the terms of the insurance contract (ie. price, coverage amount, duration, etc.). Consumers purchase insurance and receive an NFT representing their coverage and right to file a claim if they suffer from a casualty loss. Once the policies expire, and there are less claims paid out than premiums collected, the risk pool enjoys a profit which is paid out as dividends to LP token holders.
Three main smart contracts: 1) Insurance Provider Module, 2) Risk Pool, 3) Policies
Insurance Provider module is a tokenized vault where liquidity providers contribute capital and receive an ownership stake proportional to their contributions.
Risk Pools sell insurance coverage to consumers and is backed by the capital injected into the Insurance Provider module to be able to sell insurance (represented as NFTs) to consumers in a permissionless manner. The Risk Pool is tied to a single Policy which contains relevant details regarding the insurance contract (price, coverage amount, etc.).
We used Polygon ID to associate claims (ie. wallet address is a multisig contract) to be used by the Risk Pool when deciding whether or not a consumer is allowed to buy coverage from the pool.
We created a subgraph (Graph Protocol) to be able to easily query the coverage policies being sold, and how much coverage a particular user was buying (coverage can be stacked to increase covered amounts).
We used Tenderly to incentive consumers to simulate their txs, thus reducing risk and being rewarded in i3Rewards tokens which can be used to buy coverage at a discount.