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inSure DeFi

inSure DeFi is a decentralized insurance platform that allows users to insure their holdings using SURE tokens. Its insurance ecosystem is based on four fundamental pillars: a dynamic pricing model, a capital model, an inSureDAO voting mechanism, and immutable transactions. [11]

Overview

The inSure ecosystem, launched in 2019, aims to maintain stability in the crypto space by safeguarding individuals' , , and portfolios from scams, exchange shutdowns, and significant devaluations. With the help of the SURE token, the platform's native asset, users can insure their digital assets portfolios. inSure DeFi distributes the risks associated with owning cryptocurrencies across a liquidity pool, determining insurance premiums through a dynamic pricing model that incorporates technology. Although the capital required to cover the risks at any given time is determined by the price of SURE as well as the public demand for crypto portfolio insurance, the inSure platform uses the capital model to determine the amount of capital locked in the capital pool and the staking leverage present in the staking phase to guarantee that there are enough funds to avoid insolvency. Typically, inSure operations are managed through smart contracts to ensure user protection and transparency. However, specific events call for community voting, and this is where the inSure becomes essential. [13][14][15][16]

History

In March 2021, inSure DeFi integrated live Oracles into its to access historical price feeds for crypto insurance purposes. Initially, this integration utilized historical data on trading pairs to assess market volatility and adjust premiums dynamically for different cryptocurrency insurance plans. However, the platform plans to create a hybrid on-chain/off-chain application by combining Chainlink and Google Cloud AI. This hybrid system will process insurable events like scams and stolen funds. Shortly after the Chainlink integration, the inSure token, SURE, became multi-chain by successfully bridging to the Binance Smart Chain (BSC), leading to the introduction of the SURE/BNB trading pair on . Users were cautioned not to send SURE tokens from their BSC wallets to (CEXs) to prevent asset loss, as these losses are not covered by insurance. Additionally, all CEXs would exclusively use SURE ERC-20. The creation of the bridge was motivated by high gas fees on the Ethereum network and the adoption rate observed on the BSC network. In May 2021, inSure DeFi integrated with the network, expanding its crypto portfolio insurance capabilities to the network and enabling the transfer of SURE tokens from to the network. [15][17][18]

On June 28, 2021, inSure initiated a liquidity program, rewarding participants who locked SURE-ETH on , BNB-SURE on , and ETH-SURE on pools for a minimum of 30 days. Participants receive a monthly reward equivalent to 2% of the current staked SURE tokens, alongside 0.03% in trading fees, based on the chosen and LP. In September 2021, the platform announced its full transition to the network, aiming to expedite community growth and provide comprehensive support to traders on the Cardano network. By November 2021, SURE tokens had been bridged to the Avalanche network, marking the fourth chain supported by inSure DeFi. SURE tokens on the network are utilized for governance, staking with a +60% APY through LPs on DEXs, trading on both and DEXs, and enabling insurance policies by contributing tokens to the Community Vault. Additionally, in February 2022, the platform launched a referral program, encouraging members to share information about the inSure DeFi ecosystem and introducing new members to the community. [19][20][21][22][23][24]

How inSure DeFi works

The process of insuring an asset on the inSure platform begins by acquiring SURE tokens and staking them on . This action allows individuals to contribute to the liquidity pool and safeguard their funds in SURE LPs. The subsequent step involves reclaiming lost tokens by submitting a request to community members in cases where a crypto portfolio is impacted by scams, substantial devaluation, or stolen funds due to exchange closures. As inSure DeFi operates on a community-based model, new users are required to wait for 7 days for community members to process their requests. Once processed, the "insurance claim" is forwarded to the inSure DAO for approval. The inSure DeFi Community diligently reviews the request, and upon approval, the specified covered amount from the active insurance policy/s is transferred in SURE tokens from the community vault/s to the claimer's wallet. The reclaimed SURE tokens can be utilized for various purposes, including obtaining insurance policies, participating in community voting, and staking on LPs to earn a 24% . [25][26]

Economic model

inSure's crypto insurance operates based on the following principles:

  • Dynamic Pricing Model: This model determines the suitable market price by considering supply and demand dynamics.
  • Capital Model: This model ensures the availability of the necessary capital to support risks at any given moment.
  • inSure DAO Voting Mechanism: This mechanism ensures that all claims are processed in a manner that is transparent and permissionless.

Dynamic pricing model

inSure employs the dynamic pricing model to determine prices, taking into account factors such as supply and demand, supported tokens, and purchased policies. The main goal of dynamic pricing, along with its ongoing learning process, is to develop pricing strategies that factor in the inherent uncertainties of price and expected demand. This requires a continuous optimization process as mutual risk pools expand. [12][26]

Capital model

InSure's insurance capital model aims to identify systematic risks and offer an attractive risk-adjusted return for the capital pool. Its primary objective is to calculate the essential capital needed to maintain the solvency of the risk pool at a high confidence level, often surpassing 99%. The capital model helps evaluate the minimum capital required for the fund, influencing decisions regarding: [12][26]

  • The capital locked in the capital pool.
  • The staking power utilized during the staking phase

Capital pool

The capital pool significantly contributes to the platform's business growth by rewarding inSure tokens to those who contribute capital. These tokens, earned through staking on DEXs, offer various uses, including: [26]

  • Staking on projects to earn premiums.
  • Benefiting from the ecosystem's growth and seizing opportunities by holding the tokens.
  • Selling in the market to generate profits.

Surplus pool

The surplus pool accumulates whenever an insurance premium is paid, with 40% of the premium being added to the surplus pool. Another 10% is reserved until the contract expires, and if there is no claim, it also contributes to the surplus pool. As the surplus pool grows over time, it will be used to settle insurance claims initially. However, if the surplus pool cannot cover all the claims, the capital pool will be utilized to pay the remaining amount. As the surplus pool expands, SURE holders will receive a percentage from the staked SURE, creating stronger incentives for increasing the inSure staked pool. [26]

inSureDAO voting mechanism

The InSureDAO was established to ensure that decisions related to specific events require community votes. This approach aims to consider users' interests, enhance decentralization effects, and ensure a more transparent process. Importantly, InSureDAO does not have custody of the fund pool and cannot release funds to any specific individual. Additionally, each committee member is subject to replacement through voting at any time. Committee members possess several key powers, including the ability to: [26]

  • Consensually implement specific code that cannot be automatically deployed.
  • Penalize wrongdoers within the inSure ecosystem, such as those making malicious or false claims, by burning SURE tokens.
  • Enforce emergency suspensions under exceptional circumstances.

SURE Token

The utility token of inSure DeFi, SURE, is integrated into the (ETH) network and plays a crucial role in developing insurance for the crypto market by stabilizing and securing , , and crypto portfolios. It functions by: [16][27]

  • Easily tracking insurance plans acquired by token holders and payouts for insurance claims.
  • Spreading the risk of fraud among nodes for investments conducted within the ETH network.
  • Providing a hybrid method for the insurance claim payment voting system, incorporating inSure's AI expertise.
  • Enabling the resale of SURE tokens on various platforms when centralized exchange (CEX) cryptocurrencies or fiat currencies seek to provide fund insurance services.
    Distributing the Risk Funds pool in “staking mode.”

Insurance Plans

InSure generally provides insurance coverage for three types of mishaps - Scammers, Devaluations and Stolen Funds. Users have the option to use ETH, , , and to acquire their preferred insurance plan for their cryptocurrency portfolio. The insurance coverage will be activated automatically after 7 days of SURE tokens being stored in the policyholder's private wallet. Policyholders will receive a portion of the capital surplus, a strategy inSure believes will attract enough capital supply and demand to foster further growth within the community ecosystem. [9][26]

The coverage starts from 70%-80% for $1000 and then can give 100% for assets/portfolios that have an insured value of more than $140000. The duration of the protection starts from a minimum of 4 months and goes up to 2 years. These plans are subdivided and named according to duration and the value insured. The user needs to buy the required number of SURE tokens relative to the duration and value insured in order to get the coverage.
The table below explains it - [9]

NameDurationScammersDevaluationsStolen FundsValue InsuredRequired SURE Tokens
Beginner 11/3 year80%70%50%$10002500
Beginner 21/2 year80%70%50%$20005000
Startup1 year80%70%50%$200010000
Advanced1.25 year85%80%55%$600030000
Premium1.5 year90%85%60%$1800080000
Pro2 years100%90%75%$40000150000
Gold2 years100%95%80%$80000300000
Diamond2 years100%100%100%$140000500000
Painite2 years100%100%100%>$140000NA

Staking

inSure offers a staking program for the SURE token holders. They can earn 24% APY (2% per month) by providing liquidity in SURE tokens on the decentralized exchanges. The users need to stake SURE for a minimum of 30 days to earn rewards.

Liquidity Program

inSure is building the future of digital asset insurance. An essential element of that future is having a liquid marketplace where the SURE token can trade. Users of the inSure ecosystem need to be able to seamlessly transition between SURE and other digital assets.

The holders need to stake SURE paired with ETH or BNB on any of the , , and to enter the Liquidity program. 8,000,000 SURE tokens are rewarded monthly to liquidity providers. These rewards are available to every liquidity provider who locks both ETH and SURE into the Uniswap pool for at least 30 days. These rewards will be in addition to the 0.3% in trading fees that Uniswap allocates to liquidity providers. The rewards in the liquidity program are renewed on a monthly basis. Rewards are paid on the Polygon network.

Criteria and Rewards Distribution

  • Liquidity providers must have at least 0.5 ETH of liquidity and 0.5 ETH worth of SURE tokens.
  • Any liquidity provided is eligible for rewards 30 days after the liquidity was allocated
  • Rewards are distributed based on a liquidity provider’s proportionate share of the pool
  • If liquidity is removed, previous liquidity that is awaiting rewards is disqualified. In this case, the liquidity provider will need to wait at least 30 days from the next time they add liquidity
  • At the end of each rewards period, the liquidity rewards are split proportionally among liquidity providers[6]

Partnerships

In July 2021, inSure DeFi partnered with , a Web3 backend infrastructure solution, to integrate new features such as full web, web2mobile, and full mobile experiences into its ecosystem. The Deep Index API provided by Moralis allows inSure to access comprehensive historical data, including past transactions, smart contract events, and logs. This encompasses information related to insurance policy purchases, the validation of insurance plans, automation of the skim function for insured wallets, and the assignment of community-assigned risk scores for specific projects. [28]

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