Protekt Protocol brings a brand new insurance market where anyone can provide composable insurance contracts for any pool of funds.
Original title: “New DeFi Gameplay | Everyone can create an insurance contract, understand what Protekt Protocol wants to do in one minute”
Written: The Way of DeFi
The month-long ETHOnline hackathon allowed us to see many interesting new DeFi projects, and the Protekt Protocol described in this article is one of them.
Protekt Protocol allows the normal operation of cryptocurrencies, ensuring that users are protected from hacker attacks, loopholes, and exploits of DeFi protocols or smart contract weaknesses. Its goal is to let users no longer be trapped, in order to support and promote the development of the DeFi ecosystem.
Just like Uniswap created a spot market for all tokens, Protekt Protocol can also make all smart contracts have a Protekt contract as a backing, which creates a market for the risk of loss of assets held by smart contracts.
When creating a Protekt contract, users can specify an asset (DAI, ETH, USDC, etc.) and an underlying pool, which can be a lending pool, market making pool, staking pool or multi-signature wallet, etc. There is also a need to specify the expense model and the rules for triggering and evaluating claims. Once the contract takes effect, users will obtain insurance through the output of pToken, shield miner can pledge assets, and get rewards for assuming liquidation risks.
Protekt Protocol has brought a brand new insurance market with the following innovations:
Anyone can provide composable insurance contracts for any pool of funds
Insurers can produce wrapped tokens with built-in insurance coverage
The shield miner deposits funds to assume responsibility and get a return
Configure the claim process through automated rules or DAO
The liquidation waterfall triggered by repayment can be classified to diversify risks
Protekt Protocol is a series of smart contracts using the Solidity language and a front end (fork yearn) that can interact with it.
Protekt contract is a configurable insurance market that can be built on any smart contract. When starting the contract, the creator can specify:
The expense model, investment strategy, and claim process are all configurable, but must conform to the same interface. Users can find the best contract to achieve their goals, and stakers (staking funds) can pledge assets in their confident fund pool. If a payment event occurs, any insurer can submitClaim() and initiate the claim process, which can be managed by programming rules, DAO, or a centralized party.
Source link: mp.weixin.qq.com
