Personalized Insurance
Through personalized insurance, DEIN provides a robust and innovative solution that goes beyond any currently known insurance offerings.
Personalized insurance within the DEIN protocol offers a groundbreaking opportunity to insure anything you want, as long as you provide solid terms and incentives for other users to underwrite it. It empowers you to create a tailored insurance Policy that precisely meets your needs and preferences.
What is personalized insurance?
With personalized insurance, you have the potential to:
Insure Anything You Want:
Personalized insurance opens the door to insuring a diverse range of assets and risks. Whether it's your valuable possessions, specific events, or even the performance of a protocol, you have the freedom to obtain a Policy for your unique requirements.
Choose your own Premium:
By offering sufficient rewards and premiums, you can attract other users in the DEIN ecosystem to underwrite your personalized insurance demand. This creates a collaborative environment where users can participate and contribute to the whole infrastructure.
Claim Instant Rewards:
One of the unique advantages that DEIN offers to Demand Investors is the ability to claim the entire Premium for their underwriting period instantly. Unlike traditional yield-generating platforms that distribute rewards gradually on each block, personalized insurance provides the opportunity to receive all rewards immediately. This means you can enjoy instant returns and the flexibility to reinvest your earnings without delay.
Moreover, personalized insurance can be used by projects as a guarantee of their confidence in their own protocols. Similar to audits, this feature allows projects to add an extra layer of security and trust, reinforcing the credibility and reliability of the protocol.
How does it work?
There are two active personas involved in Personalized Insurance:
Demand Creator: Creates a demand in the DEIN protocol. They have the authority to set the insurance conditions and premiums for potential Demand Investors, as well as forcefully validate a Demand that hasn't raised the full asking amount. After the demand becomes validated they become regular Policyholders in the DEIN system.
Demand Investor: Other users in the DEIN ecosystem can become Demand Investors by providing Collateral for any open Demand created by the Demand Creator. They can choose to participate and contribute to the Demand based on their risk appetite. They also benefit from the instant rewards mechanic which allows them to instantly profit from their investment.
What happens when a Demand is created?
During the open status, which lasts for at most 72 hours after its creation, Demand Investors can provide Collateral for the demand.
What is the force validation process for a demand?
A Demand can be forcefully validated by the Demand Creator if the Required Collateral is not accumulated during the open status. This validation process triggers the Demand to become valid, and certain actions, such as Premium distribution and fund allocation, take place.
What are the different demand statuses?
A demand can have various statuses:
Open – lasts for at most 72 hours after its creation. Demand Investors can provide Collateral for this Demand.
Pending – Required Collateral hasn't been accumulated, but there are some funds. Demand Creator has 24 hours to validate a Demand forcefully, thus changing the Policy Size, recalculating and withdrawing a portion of the Premium.
Closed – happens automatically, if Required Collateral is not accumulated or Demand Creator has not forced validation. If no Demand Investors participated in the Demand, the Demand Creator can withdraw 100% of their paid Premium; otherwise 1% of the paid Premium is distributed to the Demand Investors as compensation.
Valid – happens automatically if the Required Collateral is accumulated during Open status (72 hours) or Demand Creator has forced validation. From this point onward Policy terms and Policyholder rights apply.
What if my demand doesn't reach the Required Collateral?
You can still forcefully validate your demand during a 24h Pending window. After that, the demand becomes Closed and you can withdraw your deposited Premium.
Please note that Closed demands re-distribute 1% of the allocated Premium to Demand Investors as collateral.
How can a Personalized Insurance Policy be claimed?
Once the Demand becomes Validated, it becomes a Policy, and the Demand Crator a Policyholder. Which means the voting procedure can be applied, allowing Policyholder to create claims and subject them to DEIN DAO voting. The voting process ensures transparency and community involvement.
Making a ClaimVotingHow does creating a Demand for Non-EVM chain work on DEIN?
When you create a demand for Non-EVM chains through DEIN, you have the opportunity to specify which Non-EVM chains you wish to cover. As part of this process, it's essential to provide the wallet address for each Non-EVM chain included in your demand.
The provided wallet addresses are key for the subsequent wallet pairing process, which is a vital step for establishing your ownership of the assets and securing a valid Policy and Claim rights.
How are Rewards distributed in Personalized Insurance?
Unlike traditional yield-generating platforms that distribute rewards gradually on each block, DEIN's personalized insurance offers an exceptional opportunity for an Instant Reward claim. Demand Investors have the unique advantage of instantly claiming all Premium for their underwriting period.
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