Architecture
In our insurance protocol, a variety of key players work seamlessly together, ensuring that users are provided with an unparalleled insurance experience on crypto bridges. Each actor plays a critical role, driving efficiency, safety, and trust.
Bridge User: The primary entity utilizing crypto bridges, seeking to safeguard their assets against potential risks. They can effortlessly opt for insurance coverage during their transactions.
Beneficiary: Upon a validated and successful claim, a bridge user becomes a beneficiary, entitled to appropriate compensation commensurate with their loss.
Actuary DAO: A forward-looking approach to claim evaluation and policy review. The Actuary DAO will be a decentralized autonomous organization of expert actuaries who will collectively assess, verify, and manage insurance claims and policies. Their collective expertise ensures accuracy and fairness.
Reinsurance Companies: Established pillars in the insurance domain, these companies are brought onboard to underwrite and spread the inherent risks. They step in to cover larger losses and stabilize the insurance model, offering additional security to the bridge users.
Risk Pool: The backbone of our insurance offering, the Risk Pool is a dedicated fund set aside to compensate successful claims. To optimize and grow the pool, external parties are invited to invest, drawn by the high-risk-high-reward model. Their investments amplify the pool's robustness and potential payout capacity.
Yield Generation: Financial prudence dictates not letting assets lie idle. The funds we hold, while waiting to cover potential claims, are invested in low-risk yield-generating platforms. This practice ensures the continuous growth of the fund, enabling us to cover larger claims while offering consistent returns to our investors.
Community Coverage Providers: Engaging the broader crypto community, these providers contribute to the risk pool, reinforcing its capacity to offer coverage while they earn steady rewards.
Non-Banking Financial Institutes: By broadening our collaboration with these institutes, we augment our risk pool's depth, ensuring a more extensive coverage umbrella for users.
Re-insurers & Other Insurance Companies: Diversifying our risk-sharing mechanisms, these entities strengthen the pool by redistributing risk and infusing capital, enhancing its reliability.
Lending-Borrowing & DeFi Projects: These platforms represent avenues where we judiciously reinvest our funds. By strategically allocating assets into these projects, we ensure stable returns for our risk pool investors, further bolstering the assurance provided to bridge users.
Crypto Investors & VCs: By tapping into their capital and strategic insight, we amplify our capacity to safeguard users' assets, making the ecosystem more resilient and user-centric.
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