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Ethereum Insurance

What is the UNN token used for?

UNN token is


UNN is the governance token for Union Protocol.

UNN token is used for


  • Liquidity mining
  • Governance
  • Holders are entitled to discounts on UNION protection premiums.
  • Loans will be available against UNN holdings.

How could value accrue to the UNN token?


Governance tokens can provide cashflow to token holders through protocol fees.

Locking

  • Tokens are locked for liquidity mining.
  • Tokens are locked for governance.

Fees

  • Premiums for insurance
  • Loans (potential)

What is Union Protocol


A peer-to-peer insurance protocol for decentralized finance.

How Union Protocol works


Union protocol provides multi-layered coverage for:

  • Layer1 risk
  • Smart contract risk
  • Exposure risk
  • Transaction completion risk

The UNION Protocol uses the following building blocks:

  • Governance process to protect a) the validity of
    claims and b) the solvency of pools to meet coverage claims.
  • A decentralized secondary market to manage risk for protection writers as well as for
    protection buyers.
  • Multi-token protocol separates governance from the market dynamics of
    protection buying and writing.
  • No KYC

It uses a three-token-model:

  • UNN tokens are for governance only.
  • uUNN tokens are received by policy buyers and represent their right to protection and coverage amount.
  • pUNN tokens are issued to protection writers in proportion to the percentage of the “protection pool” that they power.

Buyers and writers of protection can trade uUNN and pUNN tokens in UNION’s secondary market with the aim of spreading risk.

Governance

  • UNN can be locked for different terms ranging from 1 month – 4 years.
  • Staked UNN will earn rewards proportional to locked terms (with additional
  • incentives to be announced)

Read more here.

UNN tokenomics


Max supply: 1 000 000 000

  • 30% – Network, ecosystem and marketing: 300m
  • 20% – Team & advisors: 200m
  • 11.35% – Treasury: 113.467m
  • 9.33% – Seed funding: 93.333m
  • 20% – Private funding – second round: 200m
  • 4.32% – Private funding – third round: 43.2m
  • 5% – UNN Geyser: 50m

Read more here.

Docs


Similar projects


UNN token price


Categories
Ethereum Insurance

What is the DIP token used for?

DIP token is


DIP is the protocol token for Etherisc Insurance protocol (and possibly future governance token).

DIP token is used for


  • Earn transaction fees (% of insurance premiums or fixed cost).
  • Incetivize and reward user for bringing liquidity to the platform and building insurance and risk products.
  • Staking and providing bond to guarantee availability and performance of the insurance services.

More about the token here.

How could value accrue to the DIP token?


Locking

  • Holders lock tokens to earn rewards and support the ecosystem.

Fees

  • It will not introduce additional fees. Owners of a token do not receive a revenue from the use of the platform – Whitepaper (p.19).

What is Etherisc?


Etherisc is a protocol to collectively build insurance products on the Ethereum blockchain.

How Etherisc works


A user can request to create an insurance product on the Etherisc site.

  • Here are some of the current / In-production products from the community.

Etherisc consists of

  • Risk pool, which holds a certain amount of reserve collateral used to issue and
  • underwrite insurance policies against a predefined set of insurable events, within
  • the framework of an insurance model.
  • Reinsurance pool, which holds extra collateral and reinsures the risk pool
    against catastrophic long-tail events
  • A risk management system, which is a set of rules that governs the issuance,
    supply, inflation, and deflation of a digital token. we suggest to name the token RSC-FDD.
    Tokens are sold to collateralize the reinsurance pool and entitle holders to
    dividends from the risk pool’s revenue stream.
  • A token marketplace, which allows participants to purchase and redeem tokens
    at economically fair and transparently calculated prices.

DIP holders stake tokens to earn part of insurance premiums paid.

Capital allocation

When a policy expires without a claim, its premium becomes revenue:

  1. 10% Risk pool to subsidize premiums.
  2. 20% Reinsurance pool for long-tail risk collateral
  3. 70% Holders of RSC-FDD tokens as dividends.

The reinsurance collateral is gathered through an offering of an initial fixed supply of RSC-FDD tokens (a crowdsale).

Staked token holders provide

  • Oracle updates
  • Organizes new product development
  • Oracle registry
  • License provider Registry
  • Distributor provider registry

More here.

Token issuance


Total supply: 1 billion

  • 30% – Token sale (2018): up to 300m (unsold tokens went to DI Foundation)
  • 10% – Founders
  • 10% – Early supporters (original RSC token holders)
  • 5% – Team & other early supporters
  • 45% – DI Foundation (legal Swiss-governed entity)

Etherisc aims to become increasingly decentralized and give more power to token holders over time.

Price during Token Sale

  • 1 DIP =$0,10

Docs


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DHT price


Categories
Ethereum Insurance

What is NSURE token used for?

NSURE token


Is the utility token for the Nsure Network.

What is NSURE token used for?


  • Stake on DeFi project to earn fees from users buying insurance.

Why would value accrue to NSURE?


  • Fees from insurance purchases
  • Capital mining (55M tokens in total at ~10 000 /day)
  • Leverage. Stake 4x initial capital
  • Buyers of insurance also receive rewards

Potential Value generation

  • Tokens are locked in epochs of 14 days and have a 7 – 30 days timelock on withdrawals.

Nsure Network explained


Nsure.network is a platform for insurance on Ethereum.

Vote-based Dynamic Pricing Model


Insurance premiums are calculated from

  • TVL per project (DefiPulse and a few other indexes)
  • NSURE staked per project.

Paid premiums for insurance are divided as follow

  • 50% Stakers (underwriters)
  • 40% Surplus pool
  • 10% MCR (added to surplus if no claim)

ETH, NSURE, USDT, DAI, and USDC can be used to purchase insurance (all funds will be converted to a stablecoins for risk management).

To attract users the policyholders will also get some share of the capital mining. NsureDAO will vote on exact figures.

The Capital Model


Surplus Pool 

  • 40% of the premium will be added into the surplus pool
  • 10% will be reserved till the contract expires. 

In case of no claim, it will add into the surplus pool. If the surplus pool cannot cover all the claims, the capital pool will be used to pay the rest. When the surplus pool grows large enough, the mining speed will slow down. The community can vote to use the surplus pool to repurchase tokens for burns.

Nsure Staking  (Underwriting).

Nsure token holders can stake on different projects to earn 50% of the premiums at a linear release. The Capital model determines the overall staking power by taking into account the correlation between different projects. Tokenholders can earn more premium by staking with up to 4xleverage on uncorrelated projects.

The total insurance limit offered

2x times the staked tokens on that project. 

Capital mining

Capital providers receive tokens.

Total: 55% of total supply (55 000 000)

Every Ethereum block (15 – 30s)

  • 2 NSURE will be given proportionally to all capital providers.
  • 2x~5000 =~10 000 tokens/day

3-phase crowd voting mechanism



Any policyholder can submit a claim by staking NSURE.

Voting in 3-steps

  1. Policyholders > 50%
  2. Auditing Firms
  3. tokenholders

If passed in all three steps then the claim is valid.

Successful claim

50% of the claim amount equivalent NSURE tokens staked will be burned equally to share the loss.

NSureDAO
Nsure will set up a DAO consisting of members with expertize in the area. Any of the members can be replaced by voting and any tokenholder can take one of these spots.

Some powers that committee members have are: 

  • Reaching consensus to implement specific code that cannot be automatically deployed
  • Punishing bad actors within the Nsure ecosystem
  • The power to implement emergency suspension under special circumstances.

Token issuance


Tokens will initially be issued to a small group of people who will serve as beta product testers to provide feedback on complex insurance products before their release.

Users can acquire tokens either through Balancer Liquidity Bootstrapping Pool or capital mining.

Out of 100 million NSURE:

  • 55% Capital / Insurance mining. 
  • 1% Seed round. 
  • 14% Private Sale (20% unlocked, 20% release every 3 months (>1 year total vesting period).
  • 10% Foundation Reserve. 
  • 10% Marketing & Operations. 
  • 6% Team.
  • 4% LBP.

Seed token price

1 Token = 0.05 USD

More on vesting and allocations.

Docs


Paper

Docs

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NSURE price


Categories
Ethereum Insurance

What is COVER token used for?

COVER token


COVER is the governance token for the Cover protocol.

COVER token is used for


 Once a proposal is approved, the governance multi-sig (held by the 6 team members) will execute the proposal on behalf of the holders.

Full decentralization is the end goal of the COVER team. Token holders will be the owner/admin of all deployed contracts from Cover Protocol and will be able to lock their tokens and vote on proposals.

Why would value accrue to COVER?


The value proposition of most governance tokens is a promise of future cash flows.

Currently for COVER:

  • There will be a default 0.1% (changeable by governance) fee on all redeems.
  • The Balancer pool for CLAIM and NOCLAIM tokens will have a 1–2% fee on swaps.

How COVER token works


COVER protocol protects DeFi users against smart contract risk. It lets the market set coverage prices as opposed to a bonding curve.

COVER protocol has 3 user types. The protocol mints CLAIM and NOCLAIM tokens and use a Balancer pool to create the game theory.

1. Liquidity Providers. Liquidity Providers earn fees on capital provided as collateral to specific protocols that are within their risk tolerance. Liquidity providers stake funds and mint both CLAIM and NOCLAIM tokens.

  • In case of any incident CLAIM tokens are worth 1 DAI.
  • In case expiry date is reached without any incident NOCLAIM tokens are worth 1 DAI.
  • CLAIM+NOCLAIM can be redeemed together before incident or expiry is reached for 1 DAI

Whenever a new cover has tokens minted by Cover Protocol for the first time, Cover Protocol will create a Balancer pool with 80% CLAIM tokens and 20% DAI and another pool with 98% NOCLAIM and 2% DAI. The COVER UI has a convenient interface to see all of the relevant Balancer pools for each cover.

2. Coverage Seekers. As a coverage seeker one can buy COVER for a certain period for a specific protocol. The coverage seekers only need the CLAIM token, not the NOCLAIM token. For example if the price of the CLAIM token is 0.19 DAI, this means for every 1 DAI of cover you need will cost 0.19.

The high price is supposedly due to incentives during the shield mining phase, and COVER team are takeing steps to mitigate this.

3. Prediction Market Users. These COVER token holders can earn profit on the perceived risk on a specific protocol. In this use case COVER protocol asks a question, “will protocol A have a claimable incident before expiry date B”.

Token issuance


Current supply: 64,414 (max 90 000)

The COVER token will be launched in a multi-year schedule:

  • 87% (78,400) will be distributed to COVER community members.
  • 26% can be accumulated in first 12 months via shield mining. 
  • 61% will be distributed to SAFE2 token holders, immediately at launch.
  • 12% (10,800) will be reserved for the team and distributed in first year.
  • 1% (800) will be vested to the COVER treasury.

Docs


Paper

Similar projects


COVER price


Categories
Ethereum Insurance

What is NXM token used for?

What is NXM token?


NXM is both the governance token and the utility token for Nexus Mutual.

NXM token is used for?


  • Staking for claims assessment
  • Staking for risk assessment
  • Governance
  • Purchasing insurance

Why would value accrue to NXM?


Fees to tokenholders

  • Fees from purchase of insurance
  • Fees from voting according to the majority in the case of a claim.
  • NXM are withdrawn to ETH at 2.5% below the current price.

Locking of tokens

  • Tokens cannot be converted to ETH below a certain price on the bonding curve.
  • Risk and claims assessment both requires staking.

Potential future value generation

  • Insurance has product-market-fit in DeFi.
  • Known brand

Potential cons

  • KYC

What is Nexus Mutual?


Nexus Mutual is an insurance mutual, currently used to mitigate smart contract risk.

Legal framework

  • The mutual is incorporated in the UK and every participant needs to pay £1 to become a member, and link their ETH address to their identity.
  • This means members can trade with each other under one legal personality without adhering to insurance laws and such.

NXM Risk Assessment


NXM holders can stake tokens against a single contract.

  • During staking they are rewarded with NXM for insurance bought against that contract.
  • If there’s an early validated claim against that contract they lose their stake or part of their stake.

NXM Claims


To assess claims token holders can stake their tokens to vote on claims.

  • If they vote with the majority they get rewarded part of insurance fee.
  • If they vote against the consensus their stake is locked for a longer period.

Buying and selling

NXM is bought and sold via a bonding curve.

  • A bonding curve token is basically a derivative of another token in a reserve pool.
  • When tokens are locked in reserve the price of the derivative token goes up along a curve.
  • When tokens are removed the price goes down along the same curve.

The slope of the curve is set beforehand and gives the token different properties.

  • A 100% reserve gives a 1:1 peg.
  • A 1% reserve means price will increase and decrease extensively as more bonding curve tokens are minted.

An extensive article on bonding curves can be found here.

More info on bonding curves in the Bancor whitepaper.

Minimum Capital Requirement

Nexus Mutual sets a Minimum Capital Requirement to ensure that claims always can be paid.

  • The MCR is a value along the bonding curve.
  • When reserve funds are low the price goes down.
  • When reserve funds are high the price goes up.

NXM cannot be converted to ETH below the MCR value. To ensure claims can be funded.

NXM is withdrawn to ETH at 2.5% below the current price.

Bonding curve

  • Ensures claims can be funded.
  • Ensures platform growth equals price growth.

Total Supply


Total supply: 6,631,492

Similar projects


  • Cover
  • Nsure
  • Opyn
  • Bridge
  • Union

NXM Price