As usual, thank you for joining us for another week in our crypto adventure. Today we’ll be looking into the growing blockchain insurance contract space. While there’s less than a handful of projects catering to protecting us from impermanent loss, as mentioned before in our report about Raribles. Most of these options are sold out or unavailable outside of third party markets now. With security for DeFi liquidity growing at the same rate as the pool’s Ethereum balance, we’ll be looking at newcomer Nsure Network this week.
Introduction
Nsure Network is an open insurance platform for Open Finance. The project borrows the idea of Lloyd’s London, a market place to trade insurance risks, where premiums are determined by a Dynamic Pricing instead of a Fixed Pricing Model. Through the use of capital mining, Nsure will be able to secure the capital required to back the risks at any point. A three-phase crowd voting mechanism will be used to ensure every claim is handled in a permissionless and transparent manner. With this vote-based dynamic pricing model, Nsure will be able to find the right price for customers via supply and demand. Allowing them to better cater to the individual needs of its users. Taking from the Llyod’s of London model, Nsure operates as a mutualized marketplace consisting of many financial backers, grouped in syndicates, convened to pool and spread risks. These underwriters, or what’s known as “members,” include both corporations and private individuals. With this type of system, the Nsure Network itself acts as the broker between the two to help buyers and sellers meet an optimal match.
With main net set for release in Q1 2021, the Nsure Network currently operates it’s MVP on the Rinkeby Test Network and will need you to set your MetaMask wallet to such to take part. Nsure Network offers a few options for users now, the first of which being the Nsure Network Underwriter Program. Nsure’s approach for the coming main net launch bases its functionality on incentivizing underwriters with part of the premiums paid from policy buyers associated with the products they’ve decided to get exposure to. Giving users the option to stake NSURE tokens in exchange for a share of future earnings sourced from premiums, paid in ETH or stable coins. This program was built as a way for users to become familiar with the Dynamic Pricing Model used in Nsure by providing a real-time underwriting platform for you to stake your Nsure tokens and earn rewards. While intended to be a simulation for educational purposes only. This allows participants exposure to the movement of capital demand and supply while still giving some earning potential. The program allows for up to 4x leverage, meaning you can allocate 4 times your holdings to at most 10 projects, subject to the assumption that not more than 25% of your token balance (100% of your 400% total staking power) is allocated to each project. For example, if you have 100,000 tokens, the greatest staking power you can have is 400,000. Allowing you to stake up to 100,000 on Compound and 50,000 on up to six other projects. At this time Compound, Balancer, Aave, Curve Finance, Sushi Swap, Yearn Finance, Nexus Mutual, Pickle, KeeperDAO, and BoringDAO are all available in the underwriter program dashboard. Each staking epoch runs for 14 days, with an 11 day lock period followed…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
