The "Roasting Friends" series will select innovative, interesting, and potential ecological projects in the Conflux network, record their whole process "from birth to growth", and show you the colorful Conflux ecology.
Insurance needs:
Insurance is the three pillars of the traditional financial market. As an important tool for risk redistribution, insurance plays an important role in financial activities. In the field of digital assets, various risks emerge in an endless stream, but the supply of decentralized insurance is relatively scarce, and the demand for insurance for digital assets is increasing day by day.
This time, let’s talk about a decentralized insurance project on the Conflux chain: Ins3.finance (Friendly reminder: It takes two minutes to read this article, let’s see why ins3.finance is blowing up when it already has NXM and yinsure I am the first truly decentralized insurance project)
State the facts and tell the case:
The business scenario of Ins3.finance can be illustrated by the following example:
Jeff pledged 1,000 USDT insured amount as repayment capital stake on the HB1230 contract, so the HB1231 contract had an extra 1,000 USDT insured amount, and Alex used USDT as the premium to purchase the HB1231 contract with an insured amount of 1,000 USDT. On the settlement day of December 31, the payment oracle machine judges that the HB Exchange has not triggered the payment conditions, and 70% of the premium will be transferred to Jeff, and Jeff can also get staking mining rewards; if on the settlement day of December 31, The compensation oracle machine judged that the HB exchange triggered the compensation condition, and Alex received a compensation of 1,000 USDT in the contract.
If Alex wants to sell his policy for any reason, he can choose to sell his standardized policy on Uniswap or MoonSwap or choose to surrender.
If Jeff wants to quit staking, if the staking insurance amount is greater than the sold insured amount, he can withdraw freely without waiting; if the staking insured amount is equal to the sold insured amount, he has two options. The staking NFT token is resold; the second is to choose to withdraw the insurance after purchasing the policy to cancel the sold insurance amount, and then withdraw freely. This situation is much more free than the existing staking capital that requires mandatory lockup for 90 days.
There are two main compensation conditions for exchange risk events. One is that the API operations of market, assets, and currency withdrawals have failed for 14 consecutive days; the other is that API operations have failed to withdraw coins for half a year. On the payment day, each oracle node will submit their various API operation expiration dates and payment reports. As long as there is a strong consistent result, the payment result will automatically pass. Anyone can submit his API to become an authenticator, and both the authenticator and the authentication node can get rewards.
INS3 is truly decentralized insurance:
Therefore, ins3.finance is the first truly decentralized insurance project, because its payment process is completely decentralized and determined by codes. In this process, there is no interference of any interests and subjective factors, realizing the decentralized world. A beautiful vision of "the code is law".
INS3 is more than just an insurance platform:
But ins3.finance is not only an insurance platform, it should be called a decentralized credit derivatives issuance platform. The standard transferable insurance policy has become a transferable ERC777 token (ERC20 upgrade version), which can be traded anywhere. In fact, the CDS (credit default swap) that played a major role in the 2008 financial crisis has been tokenized , CDS is a credit derivative product, which actually securitizes the guarantee and credit insurance once, while ins3.finance tokenizes the guarantee and credit insurance once, allowing the policy to exist in a secondary market that can be traded, and at the same time through AMM The mechanism guarantees the liquidity of CDS.
