According to Statista, the crypto theft in 2019 and 2020 was USD 370.7 and USD 513 million, respectively. This is caused by the fact that many crypto platforms do not have the necessary protection. As a result, this has brought with it several concerns for investors.
Source: Statista
While investors in the crypto ecosystem have been increasing in recent years, it has become necessary to establish a standardized insurance procedure.
Using the BinStarter protocol, startups and projects may simply, rapidly, and safely raise funding. BinStarter is a one-of-a-kind protocol in terms of sector development and risk reduction.
How Does The Binstarter’s Insurance Mechanism Works?
BinStarter is a collateral-based protocol that supports multi-chain token pools that aim to raise funding for decentralized enterprises. This IDO launchpad helps Solana, Polkadot, BINANCE Smart Chain, Ethereum, Cardano, and Polygon blockchain. Take a look at the Binstarter video introduction.
Moreover, Binstarter’s insurance mechanism lets users open a platform to make safe, fast, and low-fee transactions. This is how the insurance protocol works:
First, Binstarter receives, in $BUSD value, 50% of the value of the IDO. Then, the Binstarter native token’s value, $BSR, is followed by the algorithms for the next 30 days. If the algorithm identifies fraud, the situation is communicated to$ BSR owners in the evaluation pool via Voting. Finally, if the voting reaches at least 60% of “yes” votes, the protocol intervenes and returns $BSR to wallet owners.
Also, Binstarter has a 4-level tier system where only the last two levels can benefit from the insurance protocol. In case you don’t meet the criteria, you can activate this protocol by utilizing the “lock” option from the staking section. This will let users deposit the needed amount to have a level of 3 or above.
On the other hand, users that hold $BSR and have exclusive benefits to optimize their investments. Also, there are designed swaps in fixed pools that have exclusive rates without being exposed to price fluctuations.
Three Reasons Why Binstarter’s Insurance Mechanism is the Market Leader
Firstly, a deflation and staking system is a couple of the unique features that this IDO launchpad has. See them all here:
- Insured Fixed Swap Pools: A clearing pool that offers a set price, transparent, quick, and low-cost exchange. Also, insurance coverage against potential fraud.
- Transparency: Transactions are transparent, fair, and safe manner with their decentralized structure.
- Low-transaction Fee: For project owners and liquidity providers, Binstarter offers 1% of transaction fees.
- Deflation policy: Binstarter burns 3.3% of the project’s tokens per day after 30 days to make the token’s price stable.
- Staking: BinStarter Pools provide an excellent opportunity for BSR holders to gain both level and APR. The APR rate fluctuates depending on the project’s profitability.
Binstarter Roadmap
Further, according to Binstarter’s Roadmap, these are the events that were accomplished on Q3-2021:
- Insurance Protocol Test.
- Evaluation Pools.
- Min. 2 project launch and sales.
Also, these milestones will occur in Q4-2021:
- Multi-Chain Fixed Swap.
- Cover Pools.
- Management Schemes.
- The beginning of the Management model.
- Initial community-sponsored Voting.
$BSR Token Utility
Finally, unlike many other initiatives, Binstarter is a decentralized project that is entirely based on community decisions. As a result, the community makes decisions on projects, new features, and project evaluations via a voting system using the $BSR token. Also, 23% of tokens are distributed for insurance & burn programs. Take a look at the whole allocation:
Source: Binstarter
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