آموزش دیفایمعرفی و بررسی پروژه‌های دیفای

Why does the Defay insurance industry play a vital role in the success or failure of a decentralized financial market?


Decentralized finance, or defa, is one of the most interesting achievements of the Blockchain and digital currencies, which is well established in this space and is gaining more and more popularity. Defai, as its name implies, is an opportunity to implement traditional financial system services in the decentralized world of the Blockchain and digital currencies.

Diffuse applications cover a wide range. Digital currency lending platforms, a decentralized gaming industry, and decentralized exchanges are three examples of Defy’s well-known achievements; But Defy applications are not limited to these three and have many more capabilities.

One of the applications of Difai that can increase its popularity among the public and lead to its widespread acceptance is its use in the “insurance industry”. With Difai, the process of using insurance can be turned into a decentralized process and the benefits of decentralized platforms can be used for it.

Adam Cheshier, Content Manager of Loop Finance Project (Loop Finance) And is one of the active writers on the Medium website, most recently an article Has published on this website and claims that the defense industry is the determinant of its success or failure in gaining widespread acceptance. You will read the rest of the article in the language of this author and you will get acquainted with his reasons for proving his claim.

Why is the Defay insurance industry important?

It was recently announced that the Anchor Protocol, one of my favorite Blockchain protocols, provides a set of insurance contracts that together can provide comprehensive insurance coverage for this protocol. This prompted me to dedicate an article to “The Importance of Insurance in Defay.”

The truth is that the risks in the world of decentralized finance are enormous. These risks are so serious that sometimes they really worry me; But to justify them, I try to think of all the benefits that a decentralized system can have. However, there are some dangers and threats that are impossible to pinpoint.

Problems with smart contracts, hacking attacks, loss of tokens support, unforeseen events, and a host of unknowns about Difai’s future are factors that make Difai enthusiasts anxious and need to be addressed. All of these problems and risks can be overwhelming.

Now what if there is a situation where we have no worries and anxieties about these risks?

I have never worried about the security of my financial accounts at traditional institutions like banks. Of course, I have been feeling for a long time that banks are cheating on the moon; But at least my assets in these banks have never been hacked or stolen. Now the question arises, what is it about traditional finance that does not have my defa portfolio?

The answer is simple: guarantee.

The US Federal Deposit Insurance Corporation (FDIC) often covers bank customers up to $ 250,000 per bank account. This gives everyone a sense of security that was not known in the world of digital currencies until recently.

Also read: The most comprehensive defense training; From garlic to onions, decentralized platforms

The emergence of the digital currency insurance market

Defay Insurance

In a high-risk financial sector, it is essential to have a system in place to protect customers and serve them against threats. In the world of defense, such a thing is offered in the form of insurance protocols. These protocols are safeguards that act as safeguards against unimaginable threats in this new financial system.

Since 2021, applications for insurance protocols have been submitted in the Defai space. These protocols cover areas such as the following:

  • Digital currency wallet insurance
  • Collateral insurance
  • Smart contract coverage
  • Cyber ​​attacks and hacks
  • De-pegging
  • Sudden oscillations and falls

I hesitate to use the word insurance; Because what is offered in Difai is not actually insurance. Using the word insurance misleads users. Most decentralized exchanges and defy protocols offer insurance-like products that have virtually no “legal obligation” to compensate. does not have And decide whether to compensate or not Discretion of the protocol And assigns specific circumstances in which the damage occurred.

This may scare you; but do not worry. With a little explanation, you will be relieved about the difference between these two types of guarantees. I will continue to use the word insurance to make our discussion less complicated.

Differences between Difai insurance protocols and traditional insurance companies

Insurance protocols, like everything else, are decentralized. Companies like Nexus Myochal (‌‌Nexus Mutual‌2) they do exactly that; That is, mutual protection and community-based. The system for submitting claims, claims, processing and compensation in these protocols is completely direct, transparent, immediate and reliable.

How does the Defay Insurance Protocol work?

You may be eligible for compensation if one of the events listed in the previous section occurs to you.

In this case, just like traditional insurances, you go through the process of filing a claim; The difference is that in Difai, you do not submit a claim for damages to a specific person or entity; Rather, you leave it to a group of people.

In the Anchor protocol, you can submit your request via Nexus Muchal. The procedure for users who submit a request for the first time is as follows:

There is a place called the Claims Assessment pool where your claim is sent to the pool group instead of the company itself. There, members will approve or deny your claim at their own discretion.

In Defay Mutual Insurance, unlike the claim review process in traditional insurances, it is the members who have the final say in confirming or denying compensation. In no case can the request be referred to a higher authority if it is rejected. There are no hard and fast terms and conditions that need to be followed. Members have the right to exercise their discretion freely, and this discretion may be positive or negative.

For this system to work, members of the evaluation team must be rewarded to be encouraged to act. In exchange for an honest vote, they will be rewarded with an NXM token, the native currency of the Nexus Myochal. It should be noted that only members whose votes were in accordance with the majority vote will be rewarded.

The information I provided is a general overview of how the Nexus Myochal works. The operation of this system has many details that are not included in this article. The Nexus Muchal website states:

In our general approach, a basic incentive structure is used and then the windows of scheduling and human intervention are closed to prevent adverse scenarios.

Anyone who is a member of Nexus Myochal can join the Claims Assessment Team. Any user can also become a member of Nexus Myuchal. In other words, membership in the evaluation team has no conditions and restrictions and everyone can participate in it. Nexus Muchal does everything it can to assess claims for damages in a decentralized and honest manner.

Introducing the best Difai insurance protocols in 2021

In this section, we will get acquainted with 4 of the top DIFA insurance service providers in 2021.

Insurace.io protocol
  • protocol Insurace.io
    protocol Insurace.io Provides users with integrated access to a range of Defay insurance services in a secure manner. The protocol has been audited by PeckShield, one of China’s leading blockchain security companies, in several stages to reassure its users. In addition, the Insurace.io protocol provides users with a wide range of premium-free contracts while providing revenue solutions to its active users. This protocol is currently active on Ethereum, China Binance Smart, Paligan and Avalanche networks.
Nexus Mutual Protocol Defy Insurance
  • Nexus Mutual Protocol
    In the previous sections of this article, we described the Nexus Myochal. Nexus Myochal uses the Ethereum Blockchainchain to completely decentralize how people apply for insurance. As a result, the protocol has taken a completely creative approach to most traditional insurance companies. All Nexus internal operations are handled by members of the platform’s evaluation team based on the number of NXM tokens available to them. At the time of writing, Nexus only offers insurance services related to exploits due to code vulnerabilities and refuses to provide insurance services related to exchange hacking and phishing attacks.
Unslashed Finance Protocol
  • protocol Unslashed Finance
    From an operational point of view, the Unslashed Finance protocol has tokenized its insurance coverage for defa users and also uses the concept of “money streaming” to provide services to users, which basically allows users to repay their premiums in a very flexible way. کردن. Unslashed Finance currently covers a wide range of potential financial events; From smart contract hacks to oracle crashes and unforeseen validation issues. This protocol operates on the Ethereum network.
ITrust Finance Protocol
  • ITrust Finance Protocol
    iTrust Finance Provides a range of Difai-related insurance services that both facilitate Difai’s global market share and reduce the risks associated with existing projects in the space. In this regard, the platform has recently started working with some of the largest companies in the field of insurance, including Nexus Myochal. iTrust Finance brings together a leading team of security and risk experts such as Alex Bertomeu-Gilles, Aave Risk Manager. This protocol is currently operating on the Ethereum network.

Concluding remarks

As Difa expands, so does its market value. Therefore, there must be a way to ensure the security of users’ assets in this space. Otherwise, Difai will not be widely accepted and will not be able to implement all its capabilities.

Ensuring the security of assets in Difai is possible only through insurance of these assets. The platforms introduced in this article insure users’ assets in the Difai space, thereby balancing the risks in the Difa world to some extent.

Of course, we mentioned and explained during the article that insurance in Difai is different from insurance in the traditional financial environment. In the world of defense, everything is done through smart contracts, and also a centralized person or entity does not make decisions about anything; Rather, the decision is made by a decentralized group of participants, and the final decision depends on the majority vote.

However, the emergence of the concept of insurance in Defai and its general nature is an interesting phenomenon that can be one of the main pillars of the widespread acceptance of the decentralized financial industry among the public.

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