We are delighted to announce that Mercurity Insurance protocol is now available to test.It is available to test and experience on testnet at https://insurance.mercurity.finance/. In the past few weeks, our community gave us valuable feedback that, in addition to suffering impairment that encountered more price volatility while mining. In response, the team upgraded the insurance protocol to also cover a liquidity provider’s loss caused by the token price reduction. There are three key roles in the insurance protocol ecosystem.:
Insurance Seekers:Liquidity providers who want coverage for investment loss during the mining period.
Insurance Providers:Underwriters who want to provide coverage for investment loss. Providers participate if they believe the price of the underlying is stable or will increase during the insurance period. They earn premiums by offering coverage.
Mercurity.Finance:a platform that offers technical support and operation service for creating insurance coverage and provides relevant configurations, including underlyings, oracle, expiry, premium rate, minimum payout amount, etc.
Insurance providers set Premium Rate and Amount to open a policy.
Insurance seekers can choose their preferred Premium Rate, stake their LP tokens and pay premiums to purchase a policy.
Settlement will be made at the insurance policy expiry date. Calculate the impermanent loss that insurance seeker faced and settle the claims to both parties. Please note, only losses in token price reduction are eligible for insurance coverage.