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Hello, Satoshi clubbers Another AMA took place in Satoshi Club and we would like to introduce to you the AMA session with our friends from InsurAce Protocol and our guest was Oliver, Founder and Coder of InsurAce Protocol . The AMA took place on 02 February.
The AMA session was divided into 3 parts with a total crypto reward pool of 500$
In this AMA Recap, we will try to summarise the most interesting points for you.
Part 1?—?introduction and questions from the Telegram&WebSite
Gold Rocket | Satoshi Club:
Hello, dear Satoshi Clubbers!
Let’s start our today’s series of AMA marathons with InsurAce Protocol.
D. | Satoshi Club:
Hello Satoshi Club!
Gold Rocket | Satoshi Club:
Today our guest is @oliver4real!
D. | Satoshi Club:
@oliver4real hey! Welcome to Satoshi club!
Oliver:
Hello folks of Satoshi Club, it’s really a great pleasure to be here.
D. | Satoshi Club:
Good to have you here!
Oliver:
Greetings from InsurAce team.
Gold Rocket | Satoshi Club:
We are also very glad to see you today!
Oliver:
Thank you.
Gold Rocket | Satoshi Club:
As far as I know, you are the founder and coder at InsurAce
Oliver:
Yes. InsurAce.
At the project level, i’m the founder; but eventually, i’m a coder too.
D. | Satoshi Club:
You need to edit your message
Gold Rocket | Satoshi Club:
To be honest, I copied from your telegram profile
Oliver:
That’s true, that’s my bio. haha.
Gold Rocket | Satoshi Club:
Done sir
Oliver:
DeFi is built in the hands of many coders, so they’re the heros behind the scene.
D. | Satoshi Club:
So, Oliver are you ready to start our AMA?
Oliver:
Yes.
I’m good to go sir.
Gold Rocket | Satoshi Club:
How did you get to be involved in crypto & InsurAce Protocol? @oliver4real
Oliver:
Yes. my love with crypto goes back to 2017 when CME and CBOE launched the btc futures, which drove the BTC price to 20K first time. as I was in another similar exchagne, i started to lead a team there to explore into cryptos and wanna to launch such derivatives as well.
That’s where i started with crypto, and ran into DeFi in early 2020, and was really fascinated by the DeFi world.
Gold Rocket | Satoshi Club:
You have a great background!
Oliver:
It happened to one of my friends that he got hacked during his farming in one of the DeFi protocols, that’s where i started the idea of doing an insurance protocol.
Which is the InsurAce project, and we started from Sept. last year, all the way to today.
Gold Rocket | Satoshi Club:
Yes! Agree! Defi could be a great opportunity and a curse
Oliver:
So basically DeFi is the world to combine my expertise and my passion perfectly together.
D. | Satoshi Club:
So insurAce is pretty young project
Oliver:
Yes.
Gold Rocket | Satoshi Club:
It is very reasonable to insure risks in defi!
Oliver:
Yes, but DeFi is young too. we all grow, and grow together.
Gold Rocket | Satoshi Club:
I’m sure you are in the right place at the right time!
Oliver:
Exactly. let me tell you more.
Gold Rocket | Satoshi Club:
We will all listen with pleasure!
Oliver:
As DeFi landscape continues its rapid growth and market demands have been increasing exponentially. As of Jan.15th 2021, DeFi TLV reached an all-time high of 23 Billion in USD.
However, the industry has been witnessing challenges and threats posed by hacking, code flaws, oracle manipulation etc, causing huge losses of user assets, which caused millions of dollars of loss. security has been one of the biggest challenges of DeFi.
Needless to say, the cyber-attacks have been posing significant threats to the whole DeFi ecosystem fundamentally. Besides the technical approaches to resolve this problem, insurance, by its nature, has been another effective means to manage this risk.
However, by taking a deeper look at the current DeFi landscape, insurance products still remain scarce. For now, mainstream insurance products such as Nexus Mutual, Cover and others fail in providing cover products accessible, with mass adoption.
There is still a long way, but huge space to go for DeFi insurance protocols.
@GoldRocket27 over.
Gold Rocket | Satoshi Club:
Gotcha!
Oliver:
So basically, InsurAce’s mission is to build a reliable, trustworthy and carefree defi insurance protocol to insure your DeFi journey.
Gold Rocket | Satoshi Club:
Thanks! your intro was great! ready to jump into community questions?
D. | Satoshi Club:
Insure your DeFi journey with insurAce
Oliver:
Yes. sure.
D. | Satoshi Club:
Thank you for the intro!
Let’s open the first part!
Oliver:
Will love to talk more with our folks.
D. | Satoshi Club:
Q1 from Telegram user @asalas95
A few months ago InsurAce announced that you had raised $1 million in your seed round, which was led by large and important projects and investors. Could you break down for us exactly what priorities these funds will be used for? What specific aspects of your project do you hope to improve thanks to this contribution? Thank you.
Oliver:
Thanks for the question.
Yes, that was our seed round back to Oct. As i’ve mentioned, we started this project back to sept. where we had the initial design. But to build this idea into a product, espeically a usable & secure & reliable product, it requires the efforts from technology, insurance experts, pr&marketing, etc.., so basically this seed round funding supports to build up the team, start PR/marketing, and some common expenses, which is very critical to us.
We’ll continue to leverage on these contributions to enhance our technology, marketing, auditing, etc..
We’ll make sure every penny is well spent, and spent in the right way, which eventually will create bigger values to our community members.
@Cool_as_Ice over sir.
Gold Rocket | Satoshi Club:
Tell us about the partners of this event, I know there are fairly well-known projects there.
Oliver:
Which event miss?
D. | Satoshi Club:
Thank you for answer!
do you have plans to conduct some private or public sales in the future? or how do you plan to be funded for the future development?
Gold Rocket | Satoshi Club:
Seed round
Oliver:
Yes, as we’ve completed our v1.0 product development (currently under auditing, targetting to launch in 2nd half of Feb), we’re recently planning to roll out another private round.
As for the public sale, i’m still discussing with our compliance adivsor since Singapore regulations are kinda of tightening up these days. we definitely want to do a public sale, but also need to make sure that we don’t touch the red lines for the long term development of the this project. so stay tuned folks. if you’re interested in the private sale, can reach out to me to talk further. Thanks.
D. | Satoshi Club:
Gotcha! thanks!
Oliver:
Oh sure. in the seed round, we got the support from notable funds such as DeFiance, ParaFi, Hashed, Huobi, Signum and Lunex. these guys really supported us a lot, especially through the early hardships.
Go on sir.
D. | Satoshi Club:
Ready for the next question?
Oliver:
Yes, sir.
Gold Rocket | Satoshi Club:
Thanks for sharing
D. | Satoshi Club:
Let’s do this!
D. | Satoshi Club:
Q2 from Telegram user @Unknown_Mark
I saw that insurer and investors are able to participate in the SCR (Solvency Capital Requirement) liquidity mining to earn the InsurAce Token (INSUR) by staking into the insurance and investment pool, can you please explain to me what is SCR ? And how I can participate in it? Thanks
Oliver:
Oh sure.
Let me explain more.
So basically, to run an insurance business, you’ll always need to ensure that you’ve sufficent capital to payout the obligations you’re underwriting, and SCR is the capital requirement to ensure that our protocol will stay solvent for a probability of 99.95% in 12 months, which is to ensure that we’re running safely. This is actually a widely adopted standardars called Solvency II in Europe. We’re borrowing the best practices from the insurance industry.
This is a pic for your reference. as you can see, SCR is a level above MCR (which is what nexus mutual is using as capital sufficency requirement), we’re operating a higher level in terms of capital management.
Gold Rocket | Satoshi Club:
Looks convincing enough!
Oliver:
To participate in this mining, you just need to deposit your cryptos (ETH and DAI at launch, and will support more soon subsuequently) as staking into the capital pool, and you’ll get the INSUR tokens as rewards.
If there is a claim payout, we’ll use the premium pool as the 1st tranche of payment, if that’s not enough, we’ll use the capital pool staked from users and distribute propotionaly.
So to participate in this is easy, but it also involves risks of losing capital in the event of claim.
Gold Rocket | Satoshi Club:
In your opinion, what is the biggest difference from other insurance companies.
Why should I insure my risks with you?
Oliver:
Got it. let me explain more.
Let me share a pic for you as a comparison of InsurAce against other insurance protocols.
This is a good summary here for your reference.
We do have our unique advantages here.
Haha, put it simple, you’ll pay less, but earn more !
Gold Rocket | Satoshi Club:
It really looks very convincing! Thanks
D. | Satoshi Club:
Gold Rocket | Satoshi Club:
It’s time for my favorite question
D. | Satoshi Club:
And i want to ask, your liquidity mining program?—?already live?
Oliver:
In 2 ways =>
- We’re doing a very unique portfolio-based insurance model, which will lower down your premium (you pay less), and make things easier for you to cover a basket of protocols at one shot.
- We’ve the liquidity mining program + investment returns as incentives => you’ll earn more.
Gold Rocket | Satoshi Club:
Tell us please about your tokenomics btw @oliver4real
Oliver:
Not yet sir, it’ll start soon in 2nd half of Feb when we launch our product.
Just hop on then, the early birds always got the most delicious worms.
Yes madam.
Gold Rocket | Satoshi Club:
Please don’t forget to invite Satoshi Clubbers on this day!
Oliver:
Folks, please refer to this pic for our token distribution plan.
There’s 50% of our tokens to be used for SCR mining program, it’ll be a pretty feast there.
D. | Satoshi Club:
Gold Rocket | Satoshi Club:
Well, everything is clear to me! Ready for the next question?
Oliver:
That’s for sure, i’ll get the tea and coffee ready for your all.
Sure, let’s move on.
Gold Rocket | Satoshi Club:
You’re very nice
D. | Satoshi Club:
Q3 from Telegram user @jackytran123
Your website says that Insurace will provide flexible and easily accessible insurance protection to end users. Do you mean individual wallet will be insured? How will you detect if funds was hack/stolen due to users carelessness or users who want to game your system?
Oliver:
My pleasure.
Oliver:
Got it, i’m writing.
Gold Rocket | Satoshi Club:
Good question
Oliver:
Nope, that’s not a day one target to insure wallets, as you’re absolutely right, it’s too difficult to identify whether it’s a hack / stolen or it’s some nasty gimmicks there.
So basically, the risk types we cover is still smart contract vulnerability as a start, and soon expand to more risk types, such as oracle malfunction, flash loan, custodian service, cross-chain, and even some layer-2 risks, which can be clearly defined, identified and investigated.
Wallet insurance is doable, but it’ll mostly be a limited liability insurance ( in professional terms).
@Cool_as_Ice over sir.
D. | Satoshi Club:
Thank you!
very infromative answer
Oliver:
Thanks sir, the question itself is intriguing too.
Gold Rocket | Satoshi Club:
Thanks for the answer! Tell us a bit about your team?
Oliver:
Yes, sure. let me share a pic.
This is brief introduction of the core members and advisors of our team.
So basically, we’re comprised of very experienced members from technology, insurance industry (chief actuary), legal / compliance and security space.
To share with you some more interesting information here.
Gold Rocket | Satoshi Club:
As far as I understand you are all public figures. no anonymous.
Oliver:
Have you gusy noticed the last one, Dennis Song, who is our security advisor, he is running a security lab under tencent, and his team was very famous in the security space, they hacked tesla steering system in an event on the spot, and another event they hacked dajiang drone.
He is damn good in security, and he is my good buddy since colleage, and he is helping us taking care of the security side.
Yes, all can be found from linked in, we’re a group of very decent fellows, there is nothing need to hide.
Gold Rocket | Satoshi Club:
Thank you very much for the information! It is very important what you told us!
Ready for the next question?
Oliver:
Go ahead please.
D. | Satoshi Club:
Nice! With this man in your team you can be sure that your system is safe!
Q4 from Telegram user @Arisabela
It says at your whitepaper that InsurAnce will adopt new actuary-based pricing models to fairly assess the expected loss of insurance products, can you briefly explain to us more about your pricing model and why is it suitable for this project?
Oliver:
Oh yes, that’s a very insightful question.
So the idea here is that we’re doing a portfolio based insurance (cover 1 or multiple protocols in one portfolio), and there’s a risk diversification effect here. To put it simple, if you’re just insuring your house and your car seperately, compared to insuring your house + car together, which will you pay more?
I guess highly likely your insurance agent will give a discount if you insure them together, why?? => there’s this risk diversification effect.
Gold Rocket | Satoshi Club:
I see a rational grain in diversification
Oliver:
Folks, you can refer to this pic for an explanation of the fundamental mechanism of why portfolio based approach will save your premium => you pay less.
Basically, premium is a calibration of your risk, with diversified risk, you get less premium paid, that’s simple, right.
Folks, I wanna to share you more of how much we can save against Nexus Mutual (i totally respect them).
We choose same protocols, same cover period, same cover amount, and let’s see the cost.
Guys, for these protocols to put together, we can save as much as 47% and 58.3%.
And it can be further lowered with our capital pool grows and more participation from the defi space.
@GoldRocket27 over for real, madam.
Gold Rocket | Satoshi Club:
It can be seen that you really love what you do.
D. | Satoshi Club:
Thanks! awesome numbers
Gold Rocket | Satoshi Club:
Ready for the next question?
Oliver:
Definitely, do what you love and love what you do.
D. | Satoshi Club:
Thank you for such a detailed answers!
Oliver:
Yes, let’s go.
D. | Satoshi Club:
Q5 from Telegram user @mm_carlos
I do not know much about security errors in the protocols but I suppose they can happen and for these cases there should be a complaints system, what should an INSUARCE client do if they find an error in the system and need to make a complaint or correction?
Oliver:
My pleasure sir.
Oh yes, no worry buddy, some channels you can feedback =>
- Just PM me, i’ll always be there to attend our community folks;
- Shout out in our community, our team will be there to help;
- We’ll have the Bug Bounty program, so you can raise your. hands there and get rewarded if the bug is authentic.
Overall, we really cherish the support from each and everyone of our community, and we’ll listen to your voice, and ensure your voice is well heard.
@Cool_as_Ice over sir.
D. | Satoshi Club:
Bug bounty is nice, we have bounty hunters in Satoshi club, i hope they can take part
Oliver:
Great. come on, hunters!
D. | Satoshi Club:
Do you have any additional questions? @GoldRocket27
Gold Rocket | Satoshi Club:
Everything is clear to me!
Oliver is a great speaker
D. | Satoshi Club:
So we can jump to the last question from part 1!
Gold Rocket | Satoshi Club:
Oliver:
Thanks for your listening.
D. | Satoshi Club:
Q6 from Telegram user @Wormz28
On the Roadmap, InsurAce is still on Continuous developments and improvements on product, operations and marketing. So can you give us small overview or some good insight into your plans for 2021? Specially the main topics that will occupy you more on the development and marketing side? Also what is InsurAce most eager to achieve?
Oliver:
Yes, please.
Sure. love to share.
- Our product v1.0 is completed (but not open to public for competitive and security reasons, but i’d love to arrange demos if you’re interested), and currently under auditing.
- Our target to do TGE in 2nd half of Feb, list on DEX for trading.
- After TGE and listing, our product launch will come, with the staking program comes first. With some deposits in our pool, we’ll start to offer insurance services.
- Conintous support of new features, new protocols, and enhancements.
To share you a product roadmap here.
We’ve a very ambitious plan for 2021, tough work to do fellows.
Gold Rocket | Satoshi Club:
A lot of work. Ambitious tasks and goals! It is very cool!!!
Oliver:
As for the PR and marketing side, we’re rolling out this round of marketing to support our product launching, and such events will continue to roll out.
On the other hand, partnerships with other protocols is our pritority to go as well. By collaborations with other protocols, we can expand our sales channels, and build up our brand.
Gold Rocket | Satoshi Club:
Thank you very much for your answers! It was very exciting despite the difficult topic!
Oliver:
Folks, to share you a golden rule in insurance industry => “insurance is never bought, it’s always sold” => partnerships is the key!!
Gold Rocket | Satoshi Club:
I memorized these words
D. | Satoshi Club:
Thank you @oliver4real ! ready for the live part?
Oliver:
Yes, gold rule for miss Gold.
Yes, please, let’s rock!
Part 2?—?live questions from the Telegram community
Q1 from Telegram user @Memo
Is InsurAce really necessary for the proper functioning and final development of Decentralized Finance? Aside from security, what other feature does DeFi provide to take it to another level of scalability?
Oliver:
To be honest, InsurAce may not be necessary to DEFI, but Insurance is definitely essential to DEFI.
Just like what Jack Ma said, if Alibaba doesn’t success, someone else will, but he will be very happy to see it. that’s our common dream.
If InsurAce doesn’t succeed, someone else might eventually, we don’t bother to be the pioneers as long as we contribute to the DeFi world!
But why not us? we got a team of decent, talented, and hardworking guys, and strong community support, we’re determined to make it!
Q2 from Telegram user @Prof. RZ
Is there a reason why InsurAce plans to expand the product accessibility to a wider audience by removing the KYC process?
Oliver:
That’s the essence of DeFi => permissionless, censorship resistant, making financial service equal and open to everyone!
So why not?
Q3 from Telegram user @Shekwoyemi
What would you used to attract and keep Investors
Oliver:
Investors come and go, but value creation lasts.
=> simple, create values, and create it continously.
Q4 from Telegram user @Crypto Minds
Who do you think you will give insurance most? For scam projects or for hacked projects?
Oliver:
Basically, anyone with a wallet and some ETH / DAI can use the insurance service, so we don’t give it to anyone, people chooose it if it’s good and necessary.
We’ve a process of risk assessment, so for those scam projects, we’ll be very cautious.
For hacked project, if it falls into our coverage scope, we’ll claim for it, nice and clean!
Q5 from Telegram user @Pradana
Hello [email protected] the growth of ‘TVL’ and other metrics in the DeFi ecosystem now in 2021, how do you view the future of the insurance market on the blockchain ?? It seems conservative to say that less than 5% of the value at DeFi is insured.?
Oliver:
Basically, 8%-10% of total TVL to be covered by insurance is a relatively rational number based on my extensive conversations with DeFi players. But currently, this number is less than 2% at its peak, still huge space to go!
Q6 from Telegram user @Kelly
Why do you guarantee that your protocol will maintain its solvency with a 99.95% probability for 12 months, and why not 100%? If after 12 months, the protocol can’t be resolved anymore, right?
Oliver:
I’ll take this question from this pretty young lady.
Trust me, no one can do 100% assurance. this is based on methematical models and industry best practice.
And i can tell you one thing:
All models are wrong, but some of them are useful!
Q7 from Telegram user @Supeer-Girl say
Among your distinctive features, you say that it is possible to get the premium at a discount with the InsurAce Token (INSUR). So, how does this work, how many tokens do I need to have to get a 10% discount for example?
Oliver:
To put it simple, you’ll get INSUR token as incentives when you buy insurances from InsurAce, it doesn’t necessarily need you to hold any INSUR TOKEN, instead, you’ll earn it!
Q8 from Telegram user @ o0s$a4l
Among its investors are HuobiDefiLabs, huobi launched its huobi smart chain, in the future can it also support this blockchain?
@oliver4real
Oliver:
Definitely, cross chain is a sure direction for us to go, and we’re looking at Polkadot, Huobi Eco Chain (HECO), and BINANCE Smart Chain.
Q9 from Telegram user @Mark Zuber
Do you have any plan to develop your business to improve speed with 2 second blocktime and reduce ETH transaction fee?
Oliver:
Yes, Layer-2 optimistic roll-up is definitely something we’re looking at.
Q10 from Telegram user @Mr. Lonely
What is the best way to earn INSUR apart from liquidity mining. How can I buy it and what benefits would I receive for holding your token?
@oliver4real
Oliver:
Sure, you can get INSUR TOKENS from these approaches:
- Buy insurance;
- Staking and earn;
- Work as claim assessors and earn;
- Participate in community governance and earn rewards;
To hold our token, the core value capture is that yo’ll be eligible for claims to the fees generate in the protocol.
Part 3?—?Quiz Results
As usual, for the third part, Satoshi Club Team asked the chat 4 questions about the crypto project. A link to a Quiz form was sent into the chat.
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