SafeGate Protocol is a decentralized insurance protocol designed to provide coverage against smart contract risk. The platform leverages blockchain technology to offer a transparent and decentralized insurance solution that is accessible to everyone with an internet connection.
Smart contract risk is a major concern in the DeFi space, as a single smart contract failure can result in the loss of significant funds. This risk is compounded by the fact that the DeFi space is still relatively new, with many new projects being launched regularly.
SafeGate Protocol aims to address this issue by providing a decentralized insurance solution that allows users to secure their assets against smart contract risk. The protocol works by enabling users to stake a certain amount of tokens in exchange for coverage in a pool. Users can participate in self-staking pools where they can stake their own tokens or use sponsored pools where a third-party sponsor stakes the tokens on their behalf.
Once a user has staked their tokens, they can submit a claim in the event of a smart contract failure. If the claim is valid, they receive a payout from the pool. The amount of the payout is determined by a decentralized governance system that enables the community to vote on which claims are valid and how much should be paid out.
SafeGate Protocol also features a unique parametric insurance model that enables the protocol to automatically trigger payouts in the event of predefined events, without the need for a manual claims process. This feature ensures that users are protected against smart contract risk in a timely and efficient manner.
In addition to providing a decentralized insurance solution, SafeGate Protocol also offers a number of other benefits to its users. These include low gas fees, fast claim processing times, and a user-friendly interface that makes it easy for anyone to participate in the protocol.
Overall, SafeGate Protocol is an innovative solution to the issue of smart contract risk. Its decentralized and transparent nature makes it a reliable and accessible insurance solution for all users, providing peace of mind and protection against the inherent risks of the risky smart contract. Newer protocols could potentially utilize sponsored pools to provide protection for their users in exchange for increased activity on their platform, which could lead to the rapid development of the protocol while undergoing an audit process and enhancing user confidence
This project has been built with the following solutions : Polygon, for the deployment and development of the application using Solidity Programming Language (EVM), Aave Protocol Ecosystem's GHO for our risk pooling staking, UMA's solution for our dispute process when the user claims a bad transaction / interaction, Airstack, Ethereum (Ethereum Foundation Bounty) and Safe's AA solution.