This project represents a prototype for a general permissionless insurance protocol. We built an insurance type to protect from ERC20 token price loss for this hackathon by using Chainlink oracle price-feeds. Our vision, however, is not just limited to insurance against price loss. The goal of the protocol is to support as many insurance use-cases as possible based on the oracle data availability. This is why it is referred to here in the description as "general". Because of time constraints, we can now only show the price loss insurance. How does it work? We re-used some of the well-known concepts in DEX. There will be an insurance provider that creates and supply liquidity to an insurance pool. A user (aka "Insurance Requester), that is eager to protect his investment, will apply for the insurance in exchange for a fee. The protocol smart contract validates whether the insurance criteria are met (e.g. is the current price token below the insurance threshold?; is the insurance still in its validity period?). In case the conditions are met, the user will be entitled to request a reimbursement and, thus, receive the equivalent amount of tokens to save its insured investment. The insurance provider, on the other hand, will be entitled to receive the users' fee in the percentage of the liquidity supplied. Feel free to join our community on Discord: https://discord.gg/fAfTTnyp
We used the following tools/technologies to create this project.
Hardhat / Solidity: Smart Contracts
Chainlink Oracle: Using data price feeds to retrieve token prices
The Graph: Created a subgraph to fetch events data from the contract and use it in the UI
WalletConnect: Wallet integration
Alchemy: RPC Provider
Contracts deployed on Ethereum “Rinkeby” and Polygon “Mumbai”