Four forms of future protection product
In our view, by leveraging blockchain and smart contract technology, there will be at least four forms of protection in the future to meet all types of needs:
By using smart contracts (claim conditions to be prescribed by the mutual) to stake reserves, one can tokenize one certain cover event and use AMM pool to make it circulate in the secondary market. At the expiry date, the smart contracts will execute the cover payment automatically. For example, token price protection is exactly this kind.
Degis uses AI algorithms to predict the price of each protection product and sell to buyers as an NFT. Liquidity providers can stake funds in the mutual cover pool to share the risk of compensation and share in the risk premium, while buyers can enjoy protection. One of the possible use cases will be cancelled flight protection.
All current existing protection protocols, NFTs, and tokens can be traded in the meta market which is an aggregator. Not only products from Degis, all on-chain protection products issued by other third party platforms can be exchanged in it. Meanwhile, users can generate their own protection products easily by setting some simple variables without writing smart contracts, and trade them in the meta market.
The discretionary mutual cover is provided by a DAO where all members are participants, which is backed by smart contracts. They make decisions together, take risks together, and determine the level of mutual cover payouts in the event of claims.