Formation Fi Partners with NSURE to Provide Risk-Adjusted Insurance Coverages
Your assets are now more secure than ever thanks to NSURE’s coverage
Formation Fi is excited to announce that it has officially partnered with NSURE, an open insurance platform, to provide insurance coverage for Formation Fi users.
Both teams will work together to construct customized coverage packages for Formation Fi users designed explicitly for market volatility risks. With NSURE, information is transparent, and users are not only allowed to outsource risk, but also become risk-takers, capital providers, governance actors, and auditors of the system.
NSURE is targeted to be a platform for users to trade risks. Let’s take a further look at the unique features of NSURE and how they will benefit Formation Fi users.
How NSURE Works
In recent years, high returns in DeFi have attracted thousands of DeFi protocols, but very few are launched with prudent pre-launch audits and examinations, leaving millions of users exposed to risks concerning the security of their assets. Facing the threats of hacks and exploits, DeFi users are naturally turning to insurance products to protect their assets.
NSURE provides an additional level of security and risk mitigation for users with assets in DeFi. By partnering with Formation Fi, NSURE gives users the freedom and ability to feel more protected from uncertain market occurrences.
NSURE is able to provide coverage to users through four unique solutions:
● Capital Model — Capital is sourced from capital mining, with a decent return of $NSURE tokens for the miners to ensure continuous and solid capital support to the underwriting.
● Dynamic Pricing Model — Rather than a single centralized entity setting up a premium rate or individual capital suppliers and policyholders having to negotiate over premium terms, NSURE uses a Dynamic Pricing Model to set the price.
● Rating System — N-SCOSS, a rating system, is built to quantify the code security of projects by assessing five perspectives: 1) history & team, 2) exposure, 3) audit, 4) code quality, and 5) developer community.
● Claim Process — Claim assessment is performed by a decentralized decision-making process. To avoid abuse or manipulation of authority, claim assessors are randomly selected from those who have staked the required amount of tokens.
Use Case: Formation Fi User with NSURE Coverage
Benefits of NSURE
NSURE is an open insurance platform for Open Finance. The project is inspired by Lloyd’s London, a marketplace to trade insurance risks, where premiums are determined by a dynamic pricing model. Here are some of the unique features available to users:
● Capital Mining — Provide capital to back insurance risks in the capital pool or purchase insurance coverage to obtain $NSURE tokens, which are minted and automatically awarded on every block.
● Open Market to Trade Risk — Nsure.Network is a permissionless platform for whoever wants to purchase coverage. Capital providers can utilize NSURE to stake on specific insurance risks to obtain daily insurance premiums. Leverage staking is available for non-correlated insurance products.
● Dynamic Pricing and Capital Management — Pricing is determined by the real-time supply of capital and demand for product insurance coverage. The capital model ensures that valid claims will always be paid and that systematic risk is under control.
Upcoming Features
For the first phase of the NSURE platform, products will be focused on providing coverage against the risk of hacks and other code-based exploits involving smart contracts within the insured protocol. Additionally, less-correlated products will be introduced to reduce correlated risk exposure to capital providers and stakeholders within the ecosystem.
About Formation Fi
Formation Fi is a DeFi project that aims to take yield farming to another level by integrating the risk parity strategy first implemented by billionaire hedge fund manager Ray Dalio for stock markets. The yield farming protocol developed by Formation Fi distributes risk across multiple uncorrelated assets within the crypto space. The protocol is chain-agnostic, community-oriented, and targets long-term success.
Our Socials
Website: https://formation.fi
Telegram: https://t.me/FormationFi
Twitter: https://twitter.com/FormationFi
Medium: https://formation-fi.medium.com
