AMA Recap of Dude’s Army x InsurAce

On Friday, March 12th, Dude’s Army community had the great opportunity to host an AMA with InsurAce’s team, very instructive and educational. We will share with you a little bit of what this experience was like.

Dude👨‍💼

AMA starting,

Welcome @oliver4insur!

Oliver (InsurAce)

Hello everyone, really happy to be here at Dude’s.

@dude56 thanks for hosting me ser.

Dude👨‍💼

Hey! Super happy to have you with us today!

Can you share a bit about your background and how you got into InsurAce?

Oliver (InsurAce)

Sure. let me do a brief introduction about myself.

My name is Oliver, i’m the founder of the InsurAce protocol.

I started to work on InsurAce project since Sept. 2020, and prior to that, I worked as CTO in a Singapore-based licensed derivative exchange. After entering the crypto space in the year 2017 where we planned to launch Bitcoin derivatives, I’ve been gravitating towards the blockchain-based Open Finance for the past few years.

The initiation of InsurAce, the DeFi insurance 2.0 Platform to make insurance services accessible for all DeFi users gave me the chance to combine both my professional expertise and my personal passion perfectly.

Dude👨‍💼

That’s super nice! So you guys started building it up since September right?

Oliver (InsurAce)

Yes, we started the project since Sept. 2020, where DeFi was taking off, but also with a lot of security incidents happened and caused millions of loss.

Dude👨‍💼

Before we move to deeper into questions about InsurAce I would like you to intro InsurAce to our community in the best way they can understand👍

Oliver (InsurAce)

InsurAce = Ace level DeFi insurance protocols.

Compared to other insurance protocols (nexus, cover, etc), what InsurAce can offer you is: portfolio-based insurance protections + investment capabilities.

our aim for users are:

Pay less,

Earn more,

Be safer.

hope this is clear.

Dude👨‍💼

Hahah loved it!

Oliver (InsurAce)

That’s right. security is always the biggest pain in our DeFi journey. While we admire the high yields of DeFi, we ‘re always afraid of getting hacked..

Dude👨‍💼

Let’s get into it so

Since you already mentioned your competitors I would like to hear from your in details the advantages against them.

I agree. Whenever you see a high APY you wonder if you will get rekt in the end😅

And how the system will work? For example who will provide the insurance? Will it be P2P or through LPs, etc??

Oliver (InsurAce)

Yes, i just mentioned about nexus mutual and cover, but i guess i’ll only mention nexus mutual from here onwards, since cover messed up a few times, and not sure if they’ll recover.

First, i would like to introduce some of our core value creations:

1. portfolio based coverage => you can cover multiple protocols in one shot, save your premium, save your gas, and save your time. (very useful for farmers)

2. investment => to make the best use of funds, and geneerate higher yields for users.

3. mining program for participants (stakers, cover buyers, investors).

And below is a comparison table between the 3 products.

A direct comparison against other 2 protocols.

Dude👨‍💼

Agreed. Cover got destroyed now.

Oliver (InsurAce)

So basically, our unique portfolio based coverage will cost you less, make things easier.

Here is a high level business architecture of our platform.

We got 2 arms, the insurance and investment arms, and these 2 can work in synergy.

Insurance proved the coverages to the investments, and investment returns will subsidize the insurance.

Dude👨‍💼

So 1. That’s actually super useful and indeed never really considered it that doing all Insurances in just one transaction is already a big advantage,

Oliver (InsurAce)

oh yes, it’s a mutual capital pool based insurance. not p2p model.

Dude👨‍💼

Specially high now with enormous fees.

Yeah. You didin’t answer me direct but you did indirectly but that’s for even making it clear

So how are you doing it? What exactly people pay for at first and how many transactions it take?

Oliver (InsurAce)

Exactly sir. that’s also one of the core reasons why one of our investor, ParaFi capital, was very interested to invest in us. They have a large portfolio as an investment firm, where they wann to buy insurance. So our portfolio-based model is very friendly to them and can reduce their cost a lot.

Dude👨‍💼

2. Explain a bit more about it? You mean investing in the protocol and making yield?

3. That’s super nice as well and will support adoption.

Oliver (InsurAce)

Got it, will answer them 1 by 1.

Give me a few minutes to type.

Dude👨‍💼

No rush! Take your time. Following up with it

You are doing solid and fast answers already😊

Oliver (InsurAce)

Let’s do a comparison first, if you are farming on 10 different protocols whereby you wanna to buy insurance for the 10 on nexus mutual or cover, you’ll have to buy it 10 times. but on our platform, you can just do it like online shopping on amazon. you choose what you wann to cover, throw it into the basket, and input the amount and duration you wanna to cover, and our price strategy will give you a premium calculated based on our pricing strategy.

Let me give you some screenshots, which you can access our website to try out => www.insurace.io

Dude👨‍💼

Looks amazing! Beautiful UI/UX

Oliver (InsurAce)

Thanks, we’re doing continous improvements on this, and our community really give us a lot of very good feedback.

Dude👨‍💼

You just entered the other topic I wanted to touch which was the development. Which stage are you guys in right now?

Oliver (InsurAce)

In such a way, you can cover multiple protocols in one transaction. => save your premium, save your gas, and save your hussle.

We have launched our product to rinkeby testnet a couple of days ago. and really attracted a lot of ppl to test.

Share you some data on the testnet.

As of today, our statistics show that there’re 2240 wallets connected to test out the insurance functions with 36118 covers bought, and 1400+ wallets test out the staking functions. and total value staked over 30M.

And within the testing period, the platform runs stably without any outage.

although these are just test data, it shows that our product has withstood the tough test of large user streams, and the community is really supportive.

Meanwhile, we’re also working on some of the improvement proposals from the community, and prepare for mainnet launch carefully.

And our code is still under auditing, target to release to mainnet within this month.

We don’t wann to go in a hurry, make sure we’re security ready, and then launch.

Dude👨‍💼

Damn! What a test! Absolutely loved it!

Thanks for that info.

Super great! Can we expect a launch for it this month?

Oliver (InsurAce)

Since we’re a capital pool based insurance, so we need to maintain enough reserve to counter the potential risks, and the excessive part is called free capital, which is what we can used for investment, to generate higher yields for the users.

And yes, that’s what we’re heading to.

Dude👨‍💼

Hmmm! Got it. Yeah makes total sense

Oliver (InsurAce)

Dude👨‍💼

In Nexus Mutual the free capital just stands there doing nothing.

Perfect! Users will select which risks they will want to take?

Oliver (InsurAce)

What i just introduced is the low-risk investment, which is mainly used for our free capital investment from the capital pool

We also have another design here, which is the high-risk invesment pool, which is to collaborate with our partner protocols, mainly some staking / yield protocols.

Let’s consider this => Dude is doing farming on Alpha, after which you’re not feeling safe, then you come to us or nexus mutual to buy an insurance to cover. Why not we do it this way? we integrate with Alpha, we list thier stakings onto our portoal, and you come to our portal to stake, in which the funds are still offloaded to Alpha, but we add a default layer of insurance in between.

In such a way, you’re doing farming + insruance in one shot.

Dude👨‍💼

Ok for last before we move on to community questions is if you can comment on the token use case and TGE.

Oliver (InsurAce)

Yes. they can choose on their own. we’re not selling the investments here, but more of selling our insurances together with 3rd party collaborations for the high-risk parts.

Dude👨‍💼

Damn! Loved it man! That’s brand new indeed

Oliver (InsurAce)

that’s what we try to build => the safe entry to defi yields.

Dude👨‍💼

Seriously! Absolutely loved your product. Seems very simple to use and the advantages of it looks great.

Do you have a rough estimative in how much will be insurance fees?

Oliver (InsurAce)

That’s not right man. Think about Warren buffet, who is running on 2 wheels => insurance + investment

Dude👨‍💼

Yeah! Understood. It’s the combination of both.

Oliver (InsurAce)

Thanks man, can just come to our website for a try => www.insurace.io.

Dude👨‍💼

For sure! Didin’t knew Testnet was up.

Would have tested it before AMA.

Anyway let’s move on to this

Oliver (InsurAce)

1%-2% on average, depending on your portfolio, but i can share is that our premium will be cheaper (20–80% cheaper) than nexus mutual based on our model validations.

Dude👨‍💼

Wow! I hope so. That’s a very low fee for a crypto Insurance…

Oliver (InsurAce)

I show you some live results.

Check out these results. Given our portfolio, we can save 47% in case-5, and 58.3 in scenario-6.

This is how much we can save even for those big, well-establishyed protocols such as aave, compound, uniswap, etc..

Dude👨‍💼

And that’s a really nice time frame for such a low free.

Impressed!

Oliver (InsurAce)

And i guess they’re in the portfolio of most funds and defi players.

Dude👨‍💼

Yeah for sure.

Is this good for Insurance providers though?

Oliver (InsurAce)

so, why not come to buy insurance, and get them covered?

Dude👨‍💼

Maybe fees are too small for them?

Got some data on that side?

Oliver (InsurAce)

That’s what do with our mining program => rewards these capital providers with our tokens. (which, nexus mutual doesn’t have, so they’re just doing shield mining).

Dude👨‍💼

Sounds perfect. Looks like everything is well structured

Community pinging me here saying you guys will be super useful and huge 😅

Oliver (InsurAce)

haha, thanks for your intrests, folks. welcome to join our community to stay tuned.

https://t.me/insurace_protocol

Dude👨‍💼

No more questions on my side besides token utility and TGE.

Oliver (InsurAce)

The InsurAce platform will issue a standard ERC20 token, INSUR, as the governance token to incentivize participants in the ecosystem.

The current use cases for INSUR token are as follows:

1. Representation of voting rights in community governance such claim assessment, proposal voting and etc.;

2. Mining incentives for capital provisions to the insurance pool and investment products;

3. Eligible for fees generated by InsurAce protocol through governance participation;

4. Community and ecosystem incentives.

Dude👨‍💼

Parfect! Loved it

Oliver (InsurAce)

This is the token distribution plan.

Dude👨‍💼

And TGE? 👀

This month?

Oliver (InsurAce)

Whereas for TGE, we’re going to do it on balancer LBP, on UTC 14:00 next monday (Mar-35)

Check this page for more infor => https://lbp.insurace.io/

Dude👨‍💼

Mar 15 right? Great! Loved it

Oliver (InsurAce)

Our LBP page, and more information here on our medium =>

https://medium.com/insurace/insurace-initial-token-launch-ea7ac31cc3c1

Dude👨‍💼

Thanks! Ok now we cannget into community questions. Please answer at least 4 questions👍

Oliver (InsurAce)

Sure. look forward to that.

Q1 Memo:

Among so many features that Defi requires and that can enhance it, Is InsurAce really what Decentralized Finance needs for its proper functioning and final development? Also, Aside from security, what other feature does DeFi provide to take it to another level of scalability?

Oliver (InsurAce)

I cann’t say that since i’m from InsurAce, but probably you can take a look at how many hacks there are in DeFi and how much money has been lost there. Apart from technical enhancements, i think insurance is really an effective risk management tool to counter such risk, which similar like in traditional finance where insurance is related to everyone’s well beings. The TVL of DeFi is growing very fast, touching 40B ytd, but the overall protected by insurance is still very limited (<2%). I’ve talked with a lot of savvies in the space, we think 8%-10% of TVL covered by insurance should be something rational.

Q2 from 🐰 🎀 𝒜𝓁 🎀 ☠️:

You mention that the InsurAce LBP program will start from 14:00:00 UTC on March 15, 2021 until 13:59:59 UTC on March 17, 2021, with a duration of 48 hours. Can you explain in more detail what this tool consists of and why InsurAnce has chosen it for the initial launch of its tokens? How can I participate and why will the LBP balancer trading start with an initial token price and a predefined weight that will change over time?

Oliver (InsurAce)

Thanks. we’ve considered many ways of token initial launch, including IBCO, Huobi IEO, balancer LBP, DoDo Crowdpooling etc.. and eventually we choose balancer LBP after the discussions with our investors & community & defi savvies.

LBP is kinda of a reverse auction, starting from a relatively high price, and end at some lower price. therefore, it’s really effective to prevent front-running. and has been adopted by many great projects.

you can refer to this article to learn more. => https://medium.com/balancer-protocol/building-liquidity-into-token-distribution-a49d4286e0d4

to participate in balancer lbp, you only need to prepare some eth as gas fee, get some udsc, and wait the price to fall into your desired range, and can buy some.

For more infor , refer to this => https://medium.com/insurace/insurace-initial-token-launch-ea7ac31cc3c1

Q3 from Gipotenuza:

Reading about Insureace I saw that “2 arm (Insurance arm and investment arm)” Can you explain about this? How does these works?

Oliver (InsurAce)

oh, it’s just like what the traditional insurance business is doing. use the free capital in the capital pool for investment to generate higher returns. Whereas in our case, we are using the free capital in the capital pool for investment, to generate higher yields for our users, otherwise, they jsut stay idle. Also, the design of “safe entry to defi yields” by collaborating with 3rd party protocols.

Q4 from JONNY SING + SUNNY LEONE

How can I buy a cover? Do I need to hold InsurAce token?

Oliver (InsurAce)

Nope, you don’t, you can just by it using ETH / DAI. and you’ll get our INSUR token as rewards.

Q5 from Ugur Alkoç

“After extensive consultation and deliberations, we’ve decided to run this on BalancerLabs”

It seems you hardly made this decision. What was your other options?

Oliver (InsurAce)

As i’ve mentioned, other options are: i) huobi IEO (huobi is our investor); ii) DODO crowdpooling; iii) Initial bonding curve offering; iv) other platform such as DAO maker, polkastarter.

Q6 from Rmitch

Is InsurAce capable of Crosschain insurance? If yes How many chain it will support?

Oliver (InsurAce)

Yes, that’ in our roadmap, we’re planning to head to BSC and Polkadot. but we won’t do that until we’re good and solid on ethereum first.

Forget to mention that our investor lineup.

Q7 from Super-Girl Says 💬

🟢 If I insure myself with you and invest in a protocol that by bad luck gets hacked and all funds are lost, how much percentage of my loss does InsurAce cover me? Do you have a limit amount? How do you handle this?

Oliver (InsurAce)

Depending the investigation, will claim for the amount that you actually loss.

Basically we’ve an advisory board to investigate into the claim request, then form a proposal for the community as reference to vote on.

Oliver (InsurAce)

Think that time might be up

Guys, if you have more questions or interested in InsurAce, welcome to join our community => https://t.me/insurace_protocol

or DM me.

Dude👨‍💼

Thanks for your time @oliver4insur ! Loved it bro! Seriously

Impressed with the product. All the best to you guys and talk soon.

Thanks for joining

Oliver (InsurAce)

Thanks for hosting me man.

Thanks everyone, stay tuned.

About InsurAce

InsurAce is a decentralized insurance protocol, aiming to provide reliable, robust and carefree DeFi insurance services to DeFi users, with very low premium and sustainable investment returns.

More information about InsurAce:

Website: http://insurace.io

Telegram: https://t.me/insurace_protocol

Twitter: https://twitter.com/insur_ace