Mercurity Insurance TestNet Guidance

Dear community,

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.

Overall Procedure

  • Pickup the insurance market. Read configurations carefully (e.g. expiry date, payment ratio, covered, 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.

Test Net User Guide

1. 、Connect the test net

We suggest using a third-party tool: https://chainlist.org/.

2、Acquire the testnet tokens

Option 1 (Recommended)

Submit your address to this form and the Mercurity team will distribute the test tokens to you.

https://forms.gle/fqCxphUcYNMqP46J6

Option 2

Example: BNB/BUSD market.

Users needs BNB, BUSD, WBNB and the LP tokens from Pancake swap pool: BNB/BUSD)

a. Acquire BNB and BUSD:https://testnet.binance.org/faucet-smart

b. After having BNB in your testnet wallet, convert partial BNB to WBNB through the contract below. https://testnet.bscscan.com/address/0xae13d989dac2f0debff460ac112a837c89baa7cd#writeContract (Connect to Web3→approve→deposit)

c. After having WBNB and BUSD in your testnet wallet, Write Contract and get LP tokens. https://testnet.bscscan.com/address/0xD99D1c33F9fC3444f8101754aBC46c52416550D1#writeContract (Connect to Web3→addliquidityETH)

3、Create a policy to sell insurance

  • Choose a market and click Sell

  • Set Premium Rate

  • Set Premium Amount

  • Approve coverage token and WBNB

  • Pay the coverage amount.

  • Check your order in Orderbook (Ask Orders)

  • Cancel your orders by clicking Cancel

  • Check your order history (shown as Current Policies) if your order is purchased by an insurance seeker.

4、Choose a policy to purchase insurance

  • Choose a market and click Buy

  • Choose your preferred policy(ies) in the Orderbook (Ask Orders).

  • Set your LP amount and Premium Amount.

  • Approve LP tokens and WBNB.

  • Stake LP tokens and pay premiums.

  • Check your order history (shown as Current Policies).

5. Feedback Form

https://forms.gle/j2cV36xRqzeM7cYWA

Terms

Total Coverage:Total coverage for all markets.

Active Policies:Current policies that have not expired.

LP: Liquidity providers.

LP Source: The source of the LP tokens, such as Pancake.

LP Tokens:LP tokens created by external swaps.

Expiry Date:The date set by insurance provider for insurance settlement.

Payment Ratio:Also named as compensation ratio. It is the proportion of the actual compensation amount over the real loss amount, generally 70%. It is set by the Platform (Mercurity.Finance).

Covered or coverage amount: Policy coverage for the single market.

Address:Smart contract address for opening a policy.

Premium Amount:Cost of the policy.

Premium Rate:Premium amount / ( LP token value * payment ratio). It is set by the insurance provider, meaning the potential revenue they may foresee to offer the insurance.

Date:Date policy is completed.

LP Fill Price:Policy complete price.

LP Amount:Value of LP tokens from external swaps.

Estimate Payment:Estimated compensation paid from insurance provider (insurer) to the insurance purchaser (insured).

Filled:Volume, date, price, timestamp and other info for completed order/policy.

Acquired: Claims paid by insurance seeker.

Premium Surplus: Residuals for insurance providers after settlement. it equals the premium value minus the estimated claims/coverage.