The founder of the platform Yearn.finance Andre Cronje announced the release of a new platform called yinsure.finance, which is going to offer something like tokenized insurance.
Now the team is testing its prototype, while its CEO throws some light upon future platform telling his followers about the decentralized insurance mechanism and providing details on the architecture of the project.
The core of the mechanism will include three main constituents responsible for the implementation of the sheme: Insurer Vaults, Insured Vaults, and Claim Governance.
The user will be able to have any financial primitive insured. It can be, for instance, a base asset similar to DAI, or a composite asset as yDAI.
The first chosen security vault is USDC stablecoin wrapped by yCRV (insured vault).
Insurer Vaults are LP or liquidity providers who deliver insurance USDC thus earning initiation fees received from insureers. They will be in charge of claim management. The insured tokenized asset is placed in Insured Vaults. Claim Governance enables the insurance to create a claim by means of staking their insured tokenized asset. Insurer LPs get access to voting with their asset in accordance with usual voting rules. In the case of the claim approval, the distribution to the LPs follows, and the insured gets USDC payment.
It is told that the project will be launched over the next few weeks.
There is no need to say about the excitement of the community that eagerly accepts everything pushing price of YFI token higher nearing to its all-time high.
However, venturing into the insurance sphere can create some problems for Yearn.Finance. They will probably have to deal with regulators and we do not know what to expect here. As it’s necessary to be licensed to sell insurance in the USA. The legal entity should be approved, and there are many other nuances that are not clear to the end in this case.
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