On August 17, yield farming platform Yearn.Finance unveiled a new tokenized insurance platform called Yinsure, “a prototype for a new kind of tokenized insurance.”
- Platform has 3 core components: insurer vaults, insured vaults and claim governance
- Liquidity Providers (LPs) providing insurance are the insurer vaults, with the first vault being USDC
- Insured vaults tokenize whatever asset is being insured - for example, when USDT is insured, it is provided to vault and generates an equivalent amount of yiUSDT
- The claim governance component lets the insured create a claim by staking their yiUSD
- Insurer LPs vote with their yiUSDC in a voting period of 3 days
- If the claim is approved, yiUSDT is distributed to the yiUSDC LPs and USDC is paid out to the insured
- If LPs decline valid claims, insurees can move their funds out to make vaults unprofitable for LPs, thus incentivizing the latter to act honestly
Related Reading:
- Yearn Finance launches V2
- YFI token brings in over $300 million on Curve Finance
- YFI token experiencing high yields
