What is InsureDAO ?
For someone who is not familiar with InsureDAO, let us explain the protocol briefly.
InsureDAO is a peer to pool insurance market protocol on Ethereum.
On InsureDAO,aanyone can create, purchase, and underwrite any insurance without KYC.
InsureDAO has following distinctive functionalities.
・Insurance pool creation
InsureDAO allows users to create any insurance pool like anyone can create any liquidity pool on Uniswap. Any insurances, including even risky protocol insurance, will be available to buy and sell on InsureDAO.
This functionality is nt available on the testnet since we want to guide testnet participants to InsureDAO through the insurance pool we have set up.
InsureDAO uses an algorithm to measurerisks and the pricing of premiumsbased on the market’s supply and demand. InsureDAO aims to ensure that insurance is always available by dynamically adjusting insurance prices based on market demand and supply.
・Custom Risk Index
Custom risk Index consists of different insurance pools. Liquidity provider can select any index to deposit their funds based on their risk appetite. Furthermore, every index pool leverages its staked liquidity and provide them to their underlying pools, increasing the underwriter’s fee earnings while lowering insurance premiums.
Leveraged rate and liquidity allocation among underlying pools will be determined by DAO.