Innovative DeFi insurance protocol InsurAce has announced the launch of its mainnet protocol on Monday 26th April 2021 following the success of its testnet 2.0 launched earlier in the month and an audit from SlowMist (www.slowmist.com), which identified the smart contracts to be “Low Risk”.
The audit report can be found here: Audit Report.
InsurAce is a decentralized insurance protocol, aiming to provide reliable, robust, and carefree DeFi insurance services to DeFi users, with very low premiums and sustainable investment returns.
At the time of writing there is over $60 billion Total Value Locked in DeFi projects globally. This figure is up from under $1 billion at the start of 2020 and doesn’t appear to be slowing down. Despite the enormity of the existing holdings, under 2% of the market is insured against faults, hacks, and other failures in the smart contracts that this value is held on.
Moreover in the last 9 months alone there have been losses totalling over $120 million due to exactly the types of issues that will be covered by DeFi insurance protocols.
Current DeFi insurance protocols vary in their operations and famously COVER protocol itself was hacked, spooking the industry at an early stage in its development. The market leader is currently Nexus Mutual, a fully decentralised insurance protocol with governance by tokenholders, however they are limited to insure each smart contract separately and there may be a conflict of interest as the token holders stand to gain the most by not agreeing to pay out on claims.
This is all set to change with InsurAce’s mainnet launch. The trustless protocol will provide collateral backed insurance in the form of staking pools in which liquidity providers will earn between 30-50% APY via allocations of the INSUR token which itself is built on the Ethereum network. (A Binance Smart Chain token and bridge are in the release schedule for the coming months.)
Importantly with InsurAce these staking pools are maximised for efficient investment to maximise returns for liquidity providers and insurers, as well as reducing premiums for insurance customers. Uniquely, InsurAce offers bespoke portfolio insurance to become a one-stop shop to insure value locked across multiple protocols.
This can result in a saving of 58.3% compared to Nexus Mutual (when compared on a spread of 6 protocols listed on both insurance sites with a total of $4 million value locked across them). Furthermore, InsurAce customers are also rewarded with INSUR tokens from investment income, resulting in an even lower net cost to the insured.
How InsurAce works:
Therefore by offering insurance for both smart contracts for protocols and DeFi portfolio insurance for locked value across multiple smart contracts, combined with a superior investment strategy to maximise insurance returns, InsurAce looks to scale fast in the sector further reducing premiums for its customers.
InsurAce Protocol is a Singapore based DeFi Insurance protocol that has quickly become the second largest protocol in DeFi insurance. At the time of writing, the protocol has a $40 million market cap based on a circulating supply of 8 million INSUR tokens. There is a maximum release of 100 million INSUR Tokens which can be mined through staking on the protocol.
InsurAce is a new decentralized insurance protocol, to empower the risk protection infrastructure for the DeFi community. InsurAce offers portfolio-based insurance products with optimized pricing models to substantially lower the cost; launches insurance investment functions with SCR mining programs to create sustainable returns for the participants; and provide coverage for cross-chain DeFi projects to benefit the whole ecosystem.
InsurAce is backed by DeFiance Capital, Parafi Capital, Hashkey group, Huobi DeFiLabs, Hashed, IOSG, LuneX, Blockarc and Signum Capital. In the three months since its first testnest was released, several high profile partnerships have been established. Information to be released in separate releases.
The project lead for InsurAce is Oliver Xie. Oliver started to work on InsurAce project since September 2020, and prior to that he worked as the CTO in one of the three largest Singapore-based licensed derivative Exchanges and Clearing Houses. Oliver entered the crypto space back in 2017 where he led a team to research crypto derivatives and blockchain technology, and has gravitated towards the blockchain-based Open Finance for the past few years. He identified an opportunity for a unique approach to providing insurance for DeFi smart contracts and users, and InsurAce was created.