We set a public protection pool here on DEGIS, where liquidity providers can enter it acting as protection providers. Each protection would be activated by the platform and backed by the liquidity pool. This is very convenient for users with different needs and also helps concentrate capital and liquidity. Through big data analysis, we get a rather precise prediction on expected payoff, which supports us to offer low and competitive prices in the protection market. On the other hand, the protection status is automatically updated through decentralized oracles, i.e., trustworthy third-party off-chain data service providers. The payoff will be cleared immediately once the protection is due. Compared to salesmen, smart contracts can reduce manual costs and dramatically optimize the user experience.
At any stage, our protection product will be packaged as NFT(Non-fungible token), with users’ basic information on it. Once submit the protection order, the corresponding NFT will be minted and sent to the user’s wallet directly. On the one hand, such non-fungible tokens have the connotation of protection service with certain intrinsic values. On the other, the NFT will not be burnt if backing protection does not get expired, users can keep it for collection and would be able to exchange discounts for other DEGIS designs in the future.
Workflow of the DEGIS platform
• Easy to enter, easy to earn.
• Permissionless to enter and exit.
• Stable premium income based on statistics.
• Additional token incentives.
As a liquidity provider, or to say, protection provider on DEGIS, you can get quick, upfront, and stable premiums from buyers through staking your money into the protection pool, then DEGIS platform will publish and sell protection policies for you. There is no minimum entry requirement, and you are free to exit at any time to withdraw all your liquidity. Profit/Loss will be settled at the time of withdrawal, which is proportional to the staking time and amount.
Pooled liquidity is designed to reduce risks for individual liquidity providers. Big data analysis and advanced machine learning models help ensure stable income. In the appendix section, we provide some numerical simulation results for reference.
• Fair, transparent and automated. • No central controller and disputing about policies. • Simple operation and instant settlement. • Rational price and significant payoff.
Find NFT Model protection on DEGIS from the website (DEGIS.io), choose the type of protection product you’d like, and finally confirm with just one simple click! The protection NFT will show up in your wallet and the payoff will be directly sent to your address if protection conditions get met in the future. No other actions are required.
Users should be well aware of the risks of protection products before buying them, and we would offer a relatively low price and high payoff to attract insureds in need.
Different kinds of protection products will be backed by the same liquidity pool on DEGIS. Liquidity providers enter this pool to provide protection services and earn premiums.