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1/ Here’s more information on yinsure - a new product offering from @iearnfinance - that will be released in the near future. Insurance is a largely untapped market in the $ETH ecosystem and one of the biggest players is NXM.
2/ However, NXM requires KYC which is problematic if you are running the largest dark-net market in the world in the basement of a Cambodian whorehouse and value your privacy. Not pointing any fingers, just saying. Well, with yinsure you can now get insurance with no KYC.
3/ It works like this: (1) Insurers will deposit an asset (likely a stablecoin like USDC) into the insurance vault and in return receive yiUSDC; (2) Users desiring insurance will deposit the asset to be insured ( $LINK) and will receive yiLINK; (3) in the event of a claim the
4/ insured will stake their yiLINK and upon a governance vote will receive the USDC from the insurers. Obtaining insurance will require a 0.1% initiation fee and also require ongoing premiums of 0.01% (weekly); all subject to change by governance ($YFI holders) of course.
5/ You may think wait, if I need to deposit my $LINK to the vault doesn’t that eliminate the purpose of insurance because now I can’t do anything with my $LINK. Wrong. You can deposit any tokenized asset to be insured, thus, all you would do is deposit aLINK or yaLINK to the
6/ vault in order to obtain insurance. So how would it work if you want to farm $LINK, yes I said farm, and obtain insurance. You would take your ERC-20 Jason Parser deposit it to AAVE and receive aLINK, which is an IOU for your Jason Parser token, then you would deposit the
7/ aLINK to the @iearnfinance aLINK vault, which would be optimized to continuously purchase more $LINK. To obtain insurance for the monetary value of your $LINK you would take your yaLINK and deposit it to the vault to receive yaiLINK. All without KYC.
8/ Insurance providers receive passive income in the form of insurance premiums. Insured users receive coverage on the monetary value of assets they insure. Remember when I said @iearnfinance was building an entire suite of products, this is only the tip of the iceberg.
9/ They are also building yliquidate (automated liquidation engine), yleverage (stablecoin leverage trades), and yswap (AMM) among others.
