Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji), reprinted by Odaily with authorization.

Blue Fox Notes (ID: lanhubiji)

Blue Fox Notes (ID: lanhubiji)

, reprinted by Odaily with authorization.

Starting from loan aggregation, YFI started the expansion of its DeFi "empire". In addition to providing stable currency aggregation and mining aggregation, YFI began to set its sights on DeFi insurance. DeFi insurance is an indispensable field for the development of DeFi.

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Insurance for YFI

• According to YFI founder Andre Cronje, YFI’s insurance consists of three core components:

1. Underwriter's treasury

2. Fund pool of the insured

• 3. Claims Governance

insurer

It is very simple to become an insurer, no KYC or others are required, just deposit specific funds into the "insurer's treasury". The first insurer's treasury is the yiUSDC treasury, and users deposit USDC to get yiUSDC. Anyone who deposits USDC into the treasury can become an insurer. What are the benefits of being an insurer? Can earn insurance initiation fees and weekly fees paid by the insured.

• Of course, the insurer has obtained benefits, but also has obligations: if the claim is approved, USDC will be deducted from the treasury and paid to the claimant. In other words, yiUSDC not only represents the income of the insurer, but also represents the obligation of the insurer.

Insured

Similarly, there is no need for KYC. The insured can become the insured and obtain insurance services by depositing the insured funds into the "insured's treasury". For example, if a user wants to insure their CRV assets, then the user deposits it into the insured's treasury, and generates yiCRV after depositing. When depositing into the "insured's treasury", a 0.1% start-up fee is required, and at the same time, a 0.01% fee will be deducted every week.

The insured can withdraw CRV, or deposit more CRV, at any time. The amount of user insurance is the amount of CRV deposited. This kind of insurance service has no fixed term and has greater flexibility.

In the event of a claim event, claims governance is required. In the example above, the insured makes a claim by staking yiCRV. Underwriters vote with their yiUSDC. During the 3-day voting period, 33% approved and 25% rejected.

Assuming the claim is approved, yiCRV will be allocated to the insurer of yiUSDC, and USDC will be paid to the insured.

The design of this mechanism is relatively flexible. It can insure various assets, which can be basic assets (DAI) or compound assets (yDAI).

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YFI's insurance is an active exploration in the DeFi field

At present, Nexus Mutual insurance requires KYC. In encryption insurance, there are certain thresholds. However, YFI’s DeFi insurance does not require KYC, and the insurer and the insured can realize the insurance relationship by pledging assets. Of course, the specific details of the claim management here have not yet come out, and the game has not been practiced so far, and the specific effect is unknown.However, YFI's insurance represents the development direction of insurance in the DeFi field. In the future, new insurance mechanisms will surely emerge. For now, YFI insurance exploration is one of the most active explorations in the DeFi field.》、《secondary title》、《Possibility of YFIBlue Fox Notes also paid attention to YFI before "

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