YieldGuard

This platform creates a risk-sharing ecosystem where users can choose between protected yields or higher-risk, higher-reward strategies through an innovative insurance mechanism.

Two Pool Types Safe Pools - Protected Yield Strategy What it is: Deposit directly into high-yield DeFi protocols with full insurance protection Yield: Base protocol APY minus insurance premium (~5%) Protection: 100% refund if the protocol gets "hacked" Example: Peapods Finance at 25% APY → User earns 20% APY with full protection Boosted Pools - Insurance Provider Strategy What it is: Deposit into stable, low-yield protocols while providing insurance to Safe Pool users Base yield: ~4% APY from top-10 TVL protocols Insurance premiums: Earn premiums from each protocol you choose to insure Risk: Must compensate Safe Pool users if insured protocols fail

How the Insurance Mechanism Works Single Protocol Insurance Boosted Pool User: • Deposits $1,000 in stable protocol (4% APY) • Chooses to insure Peapods Finance (+5% premium) • Total APY: 4% + 5% = 9% • Risk: Must refund Safe Pool users if Peapods fails

Cumulative Insurance Strategy Boosted Pool users can insure multiple protocols simultaneously for exponentially higher yields: Base Protocol: 4%

• Peapods Insurance: +8%
• Notional Insurance: +15%
• Flare Insurance: +5%
• Wombex Insurance: +30% ───────────────────────── Total APY: 62%

The Trade-off: Higher yields come with compounding risk - if any insured protocol fails, you must pay out claims.

Hack Definition & Triggers A protocol is considered "hacked" when its total value locked (TVL) drops 5-10% from its all-time high, triggering insurance payouts.

Risk Management Features Insurance Buffer Requirements Platform maintains extra TVL buffer to handle multiple simultaneous failures Example: If $10M total insurance TVL covers $2M in Peapods exposure, the system ensures enough remaining funds ($8M) to cover additional potential hacks Dynamic APY Calculation Boosted Pool APYs adjust automatically based on: Total platform TVL Distribution across protocols Current risk exposure levels Auto-Exit Protection Safe Pools automatically exit positions when insurance costs exceed base yields, preventing negative returns.

Economic Incentives For Safe Pool Users Lower but guaranteed yields with full downside protection Peace of mind - no loss of principal even if protocols fail Automatic risk management through auto-exit features For Boosted Pool Users Significantly higher potential yields through insurance premium collection Diversified income streams from multiple protocol insurance Calculated risk exposure with transparent payout obligations

Platform Value Proposition This creates a sustainable yield ecosystem where: Risk-averse users get protected exposure to high-yield DeFi Risk-tolerant users earn premium income while providing valuable insurance services Market efficiency is improved through better risk pricing and distribution The platform essentially functions as a decentralized insurance company where users can be either policyholders (Safe Pools) or insurance providers (Boosted Pools), with yields and risks balanced accordingly.

Person 1: LayerZero Setup

• Clone LayerZero V2 OApp template
• Set up development environment (Hardhat)
• Create InsuranceCore.sol skeleton
• Initialize cross-chain configuration (ETH, ARB, BASE)

Person 2: Oracle & Payment Setup

• Set up Chainlink development environment
• Initialize Circle SDK project
• Research Chainlink price feeds for target protocols
• Set up CCTP testnet configuration

Person 3: Frontend Setup

• Create React app with Web3 integration
• Set up wallet connection (MetaMask/WalletConnect)
• Design basic UI mockups (3 key pages)
• Install dependencies (ethers, @layerzerolabs/ui-kit)

Person 4: Infrastructure Setup

• Create GitHub repo with proper structure
• Set up deployment scripts for 3 chains
• Create documentation templates
• Set up screen recording tools for demo