Cryptopedia - inSure DeFi
inSure DeFi operates as a community-driven ecosystem for crypto asset insurance, allowing users to protect their portfolios by purchasing SURE tokens with fiat or other cryptocurrencies. The platform spreads ownership risks across a liquidity pool, using a Dynamic Pricing Model powered by Chainlink to set premiums. The capital needed to back these risks depends on SURE’s market price and community insurance demand. Claims are processed through the inSure DAO, a decentralized system where voters identify fraud and approve only valid claims.
Trusted by thousands of members, inSure DeFi is a Decentralized Insurance Ecosystem that shields crypto and DeFi portfolios from scams, exchange shutdowns, and sharp devaluations.
Competitive Advantage of inSureTransparency is central to the platform’s reliability. Because blockchain data is synchronized across all nodes, every participant sees updated information instantly. To maintain openness, the website features a dedicated module displaying real-time financial status each quarter. This includes risk factors, minimum capital requirements, historical token prices, claims assessment summaries, and counts of locked and traded tokens.
Economic Model - How it worksinSure’s insurance framework relies on three components:
I. Dynamic Pricing Model, which establishes market price through supply and demand;
II. Capital Model, which ensures sufficient capital backs risks at any given time;
III. inSure DAO voting mechanism, which guarantees transparent and permissionless claim handling.
Capital ModelGiven the high leverage in insurance, the Capital Model calculates the funds necessary to maintain solvency at a 99.9% confidence level, aligning with EIOPA’s Solvency II framework. This calculation determines:
I. The capital locked in the Capital Pool
II. The staking power applied during the Staking stage.
Surplus PoolWhen premiums are paid, 40% goes into the surplus pool, while another 10% is held until the contract expires. If no claim occurs, this reserved amount also joins the surplus pool. This pool grows over time and covers claims first. If the surplus is insufficient, the capital pool pays the remainder. As the surplus expands, SURE holders earn a percentage from staked SURE to encourage growth of the inSure Staked Pool.
Holders can stake on various DEXs to earn a percentage from trades, alongside the insurance benefits inSure plans to offer. Initially, the focus is on risks like scams, devaluations, and stolen funds. The community may vote to introduce less-correlated businesses later to boost returns.
Governed by CommunityWhile smart contracts handle most operations, community voting manages specific events to ensure transparency and decentralization. The inSure DAO facilitates these decisions and handles extreme situations. Notably, the inSure DAO does not hold custody of funds nor can it release money to individuals. Committee members are subject to replacement by vote at any time.
The inSure DAO follows principles of sustainability (protecting member interests via fund pool stability) and growth (driving premium and membership increases). Members include experts in insurance, co-governance, and blockchain development. Their powers include:
I. Reaching consensus to deploy code that cannot be automated;
II. Penalizing bad actors, such as those making malicious or false claims, by burning SURE tokens;
III. Implementing emergency suspensions when necessary.
Any inSure holder can join the DAO. Members propose actions with clear options and recommendations, and the majority vote decides implementation.
Future Integration for Automated Claim Processing of Stolen Funds and Scam Events using Google Cloud Platform (AutoML & Cloud Inference)inSure DeFi is developing a hybrid on-chain/off-chain solution combining Chainlink and Google Cloud AI. This system uses Google AutoML to process on-chain data regarding insurable events like scams and stolen funds, then relays results on-chain via Chainlink.
Chainlink’s ability to access external APIs allows smart contracts to receive processed data directly. inSure DeFi intends to use this feature to leverage Google Cloud Platform’s ML services, including AutoML and Cloud Inference API, to analyze public blockchain data and trigger automated claim fulfillment through Chainlink oracles.
Chainlink was selected for its security and flexibility in calling off-chain APIs. As the leading oracle solution, it secures over $10 billion dollars in on-chain value for projects like Aave and Synthetix. Its network comprises secure node operators aggregated into decentralized oracle networks for accurate, tamperproof feeds. inSure uses volume-adjusted global prices from CEXs and DEXs for high accuracy. By integrating this data with off-chain Big Data warehouses, inSure aims to create more robust insurance products for diverse crypto portfolio risks.
