Decentralised Finance, DeFi, refers to financial systems that operate on blockchain tech as compared to traditional financial. The traditional financial industry seeks to protect investor investments by working with insurance, and this concept is now applicable in the crypto and blockchain industry, thus the birth of decentralised insurance platforms. Insurance offers a guarantee of compensation in the event of a loss or damage. The idea is to protect investments from any type of risk.
The main advantage of decentralised insurance is its ability to protect deposits against loss. DeFi is considered secure, offering a solution to cases of hacking. Other than security, decentralised insurance is regarded as sufficient, exempts intermediaries, and in turn, eliminates middleman fees. In addition, investors can benefit from its transparency and it allows for the liquidation of crypto-backed assets.
People are encouraged to go for decentralised insurance for the following reasons
– To protect DeFi deposits
– Protects crypto volatility and flash crash
– Protects against the risk of theft
– Protects funds from the risk of hacking from exchange platforms
– Protection against attacks from crypto wallets
The concept of crypto insurance is gaining popularity, thus attracting more investments in the crypto sphere. As such, the market has multiple options for insurance that are specific to the DeFi ecosystem. With an increase in crypto investments, it is evident that more people will adopt the idea of decentralised insurance. The rise of decentralised insurance platforms is creating a fuss, and for good reason too. Among the frontrunners in the decentralised financial insurance projects is InsurAce.io, click here to know more. InsurAce.io serves as a decentralised insurance protocol that seeks to provide DeFi insurance services at more affordable rates and provides more sustainable investment returns. The platform is currently considered one of the best DeFi investments for individuals and institutions alike.
InsurAce.io – Understanding The New DeFi Insurance Protocol
InsurAce.io, the first multi-chain insurance dApp, is currently a top decentralised insurance protocol that seeks to offer protection for crypto investments in the decentralised financial community. The platform offers a range of insurance products, not only to protect crypto investments but also to provide sustainable returns for investors. InsurAce’s key purpose is to deliver the most comprehensive and secured insurance and investment product.
This DeFi insurance protocol is the first of its kind to offer cross-chain coverage. The decentralised finance ecosystem is rapidly expanding, and thus the realisation of more DeFi protocols that are built of differing public blockchains such as Polygon and Solana. InsurAce.io, encouraging cross-chain coverage, is providing coverage to non-Ethereum decentralised finance projects, thus covering a wider portion of crypto investments. In turn, this gesture will lead to working with the top DeFi projects to promote successful and efficient implementation of these projects.
Early in the year 2021, InsurAce.io launched its MVP version of their product. InsurAce.io products are looking to address the ongoing challenges that other decentralised insurance platforms are facing. If you are looking for an insurance platform that will address concerns such as accessibility strains, capital inefficiency, as well as several underlying risks, then you will find a solution with InsurAce.io.
This decentralised insurance platform seeks to ease accessibility to insurance services by fighting high premiums, eliminating KYC limitations, offering product diversity, and allowing for cross-chain coverage. The platform is also fighting the challenge of underlying risks that includes concentration risk, security of insurance protocol, claim assessment, as well as risk evaluation. You do not have to worry about capital inefficiency from concerns such as unsustainable investment return, limited diversification opportunities, or low reserve utilisation. These challenges have been pushing away investors from crypto investments, thus the lug in the blockchain and crypto investments. InsurAce.io addresses these challenges, allowing users on the platform to secure their crypto investments.
The platform is diverse, working with outstanding investors and collaborators to ensure that all services and products are accessible. Some of the investors include DeFinance Capital, HashKey Group, HoubiDeFiLabs, LongHash and LuneX. InsurAce.io also has partnerships with the likes of Solana Foundation, Elrond, Anchor Protocol, Pendle Finance, and Mushroom Finance, among others. It is these links that push the products and services to reach out to the major target market.
Early 2021 led to the issuance of $INSUR tokens, as well as the beginning of the genesis staking program. The platform has enhanced security due to the launch of the version 1.0. In addition, users will be able to acquire insurance covers for a selected list of DeFi protocols, thus being able to meet various risk needs of users. Over time, the platform will develop and polish the available products with the objective of providing a more user-friendly platform, while at the same time, ensuring that users encounter low and affordable premiums.
How InsurAce.io & DeFi Insurance Works
DeFi insurance acts not only as a safety net for decentralised finance markets but also as an investment opportunity to secure some of the best DeFi Investments. The objective behind blockchain projects and crypto insurance is to gather confidence for investors. Keep in mind that these insurance platforms are run by smart contracts and they are also governed by the larger community, a regulatory body of the specific country of operation. While initial decentralised insurance focused on a single network, more innovative projects have opened up cross-chain cover, which means that investors can secure more than one network. InsurAce.io stands out as one of the market leaders with innovative projects when it comes to cross-chain covers. Decentralised insurance platforms operate in a similar manner, despite the differing service offers.
First, decentralised insurance covers require that members register for membership before they can purchase a cover. Initial decentralised insurance platforms require registration with the KYC process. However, this is not the case with InsurAce.io because users are not required to undergo the KYC process. The added advantage to this is that the platform can reach a wider target market. Users will then be able to purchase an insurance cover against a smart contract, as provided by a specific platform. The user will specify the amount as well as the duration they will need the cover for.
Unlike traditional insurance financial covers that issue and underwrite policies from a multinational insurer, decentralised insurance is dependent on its community of users, who are responsible for dictating premiums as well as settling payouts. The main participants of decentralised insurance protocol are its underwriters. These underwriters provide capital for each individual protocol from which they take a share of premiums, commonly referred to as staking. Not only do they stake but they also claim assessors as well as govern token holders, who are responsible for voting on claims or any changes to the protocol.
InsurAce.io implements a dynamic pricing model. Rather than basing the pricing and premiums on underwriters, the pricing model is based on capital mining. Capital mining determines prices depending on the real-time supply of the available capital, which helps determine capacity, as well as demand of insurance coverage. The added advantage of this system is that valid claims will always be paid out and that systematic risk is regulated to remain under control.
Decentralised insurance is gaining popularity in securing crypto investments. Just like in the traditional finance field, investors will invest more when they feel secure and know that their investment is in the right place. $INSUR holders are advantageous because they benefit from platform incentives on insurance, DEX, crypto lending, and upcoming protocols collaborating with InsurAce.io. The functionality of the platform is suitable for collaborations with some of the best DeFi investments to boost investment portfolio. This is the reason that decentralised insurance is drawing attention, especially for crypto insurance. Despite the existence of a number of decentralised insurances, InsurAce.io stands out in the industry for the following benefits.
Other decentralised insurance platforms allow for users to take an insurance cover focusing on just one network. Currently, with cross-chain coverage, investors can secure more networks. InsurAce is the first insurance platform in the industry to allow for cross-chain coverage, so now, investors can look forward to securing the best of its offers. The platform also promises to offer more and better services to ensure that investors are guaranteed security on their investments without limiting on the available crypto networks. InsurAce.io will provide coverage to non-Ethereum DeFi projects. In this, it will be possible to collaborate with some of the top DeFi projects.
The platform offers low and more affordable premiums, making it attractive for users from all walks of life. Users can save up to 60% on their insurance by using the InsurAce.io portfolio method of insurance. The available pricing models are designed to lower the cover cost. Affordable rates for insuring crypto investments will attract more investors, thus easing the insurance capabilities for more individuals. A good example is from the collaboration of InsurAce.io and Anchor Protocol, which offers more returns to investors.
Lack of Know Your Customer KYC process:
This advantage makes it easy for users to access the platform due to a wallet-based accessibility. In turn, users have a flexible insurance protection policy. With no KYC, more individuals gain access to decentralised insurance while reducing the barriers of entry. This advantage will attract the wider target market in the crypto industry as InsurAce.io seeks to serve the mass market. With a wallet, participants can access the products and services on the platform via the dApp.
InsurAce.io Investment opportunities:
InsurAce.io not only offers an insurance cover for crypto investments but it also offers investors an investment option to improve their investment portfolio. The platform token economy features SCR mining programs that allows participants to earn INSUR, which is the InsurAce.io Token. To achieve this, participants must stake into the liquidity pool using ETH, USDT, as well as other eligible tokens. In addition, clients can also gain returns in other ways, such as investing directly in DeFi protocols and staking to get $INSUR Token as a reward ,thus benefiting both the insured and the insurer.
How Secure Is InsurAce.io?
Several DeFi applications are facing the fear of cyber security risks. It is due to cyber security risks that InsurAce.io is looking to provide a solution to in the crypto sphere. The platform features network security features that ensure top-notch security to investments. The concept behind insurance is to guarantee investors that their investment is secure. Also, top DeFi projects are embracing the concept of decentralised insurance to ensure secured investments.
This said, the secure and highly-resilient protocol has adopted the best security practices, which include:
Smart contract audits:
In an effort to ensure a state-of-the-art security platform, the presence of a third party will carry out an independent audit of the smart contacts. The objective of such audits is to identify, detect, and eliminate any potential contract risks through code reviews and testing. All audit reports are released to the public, thus boosting individual confidence.
Up-to-date security solutions:
It is important to monitor the health status of the platform in question, thus the inclusion of security solutions that monitor the network. In addition, it will also monitor other processes such as on-chain activities, key details on the administration, as well as oracle dependencies.
An effective security incident response process:
Cyber security is a major concern for online platforms, and InsurAce.io is no different. Therefore, it is important to establish a clear process that will properly respond to cyber security incidents that will counter a breach of security. In such occurrences, InsurAce.io will respond by implementing the processes such as suspending or terminating the functions of smart contracts or add a pending transaction to suspicious transactions. On the other hand, the platform can revert or hold suspicious transactions and carry out a background trace to verify the transaction.
Who Should Consider Buying $INSUR?
InsurAce.io will issue $INSUR as the governance and utility token, which will act as an incentive for the participants in the ecosystem. $INSUR serves as an ERC-20 token secured by the Ethereum blockchain. InsurAce.io have also deployed on both BSC and Polygon, bridging the INSUR token to both networks. The InsurAce.io platform will collaborate with insured top DeFi projects to build an ecosystem where $INSUR holders benefit from the platform. $INSUR holders will benefit from platform incentives on insurance, crypto lending, DEX, and upcoming protocols that are in collaboration with InsurAce.io.
There are a number of scenarios in which the $INSUR token is usable. You can use the token as a mining incentive for capital provisions to the insurance pool in addition to investment products. The token is also used in community governance. Another user scenario is that it acts as a representation of voting rights in community governance scenarios, including proposal voting and claims assessment. It is also applicable for other community and ecosystem incentives, thus playing a major role in rewarding participants. Under community governance, the platform will be introducing more use scenarios for $INSUR token.
The $INSUR token is listed on both centralised and decentralised exchanges such as Huobi Global, Bitcoin.com, Uniswap (ETH), and PancakeSwap (BSC).
The platform services are not restricted to $INSUR token holders only. All individuals with a wallet can use the platform services by connecting to the protocol. However, it is beneficial to buy the tokens because the benefits of the platform will majorly be accorded to token holders. There is no limitation to who should consider purchasing the token. It is open to individuals and institutions alike.
Over time, more DeFi users are adopting the use of decentralised insurance as a hedge tool. Looking at the prevailing security hacks in the market, it is evident that more individuals are looking to protect their digital assets against smart contract risk and hacking. There is a clear trend that shows that individuals and institutions are paying great attention to risk management, considering that decentralised finance is also taking the market by storm. Currently, blockchain and cryptocurrency stand out as revolutionary technologies. Decentralised finance aims to shake up financial services through the adoption of blockchain tech, as well as digital asset ecosystems.
InsurAce.io has identified the opportunity and provided services that not only provide investment opportunities for investors but has also secured crypto insurance. Investors have the ability to secure their investments, despite the ongoing concerns of hacks and losses. The idea is to protect customers’ funds and investments, while at the same time, providing higher APY. This protocol has quickly grown in the field of decentralised insurance while focusing on providing secure, reliable and robust DeFi insurance services. Insurance pool free capita is used for investment managed by the investment arm.
InsurAce.io generates revenue from a combination of the investment returns and insurance covers. As a decentralised insurance protocol, participants can benefit from DeFi insurance services, accompanied by low premiums, as well as stable investment returns. With an enriched product line and zero premium features, SCR mining and sustainable return, InsurAce.io is seeking to redefine decentralised finance insurance by protecting users from security risks, with the added advantage of user-friendly, accessible products and capital efficiency.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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