Last updated a year ago
SureADA: Make your portfolio free of market and security risks
Problem
Crypto is great, but risks are daunting.
Over 7 billion dollars have been lost in hacks only.
We would offer investors a peace of mind by insuring against such dangers.
Total to date
This is the total amount allocated to SureADA: Make your portfolio free of market and security risks.
About this idea
[GENERAL] Name and surname of main applicant
Grigorii Gerasev[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)
Individual[GENERAL] Requested funds in ada
91200[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)
5[GENERAL] Please indicate if your proposal has been auto-translated into English from another language
No[GENERAL] Summarize your solution to the problem (200-character limit including spaces)
Our project is fully decentralized parametric insurance system, with insurance premium determined by prediction market.
[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?
No[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”
No dependencies.
[GENERAL] Will your project’s output/s be fully open source?
Yes[GENERAL] Please provide here more information on the open source status of your project outputs
All our code will be available under MIT license at Github.
This includes user-facing web-interface, server backend, smart-contracts and documentation.
We will strive to document code well enough for it to be reusable by unrelated projects.
[METADATA] SDG rating
No.
[SOLUTION] Please describe your proposed solution
Our solution is meant to be as simple as possible, but not more than that.
To achieve that we leverage the power of automation and decentralization as much as we can.
Our solution would consist of three parts:
- Fully automated logic recording if insurable events happened on-chain
- Open prediction market, determining probability of insured event happening
- Insurance module providing insurance by current market evaluation + fee from independent insuring providers
Such design would be completely open both for users and investors. It would be independent from centralized claim evaluators and risk estimation models, that users should believe in.
[IMPACT] Please define the positive impact your project will have on the wider Cardano community
Our main use case is risk-mitigation for crypto users and investors. This would bring more risk-averse users into Cardano.
One of the interesting use cases is launching new tokens. New tokens are more risky and thus it may be hard to sell them to first users. By providing insurance against security risks or market price drop, and investing real money on protocol viability, creators might convince new users. Such bets by team and auditors could be possible to highlight for community.
Another big use case is protocol security params selection. A lot of params, for example related to collateral risks, are now decided by experts and governance voting. Public insurance market against such risks is much more transparent for users and a scalable solution.
Technology-wise we would provide basic open source implementation for on-chain oracles and prediction markets.
[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?
Similar solutions are already working, and our may be even better
While our approach contains substantial innovation, it is based on multiple well known and battle-tested solutions including: DeFi insurance, exotic derivatives and prediction markets.
Overall, insuring risks on blockchain is an established industry with
over 300m$ TVL. While this works great for consumers, it is dependent on manual
assessment of risks, thus such solutions in our opinion are much harder to bootstrap without relying on big initial investments and are too complex to verify their economic stability.
Idea of using the traditional financial market for hedging unexpected risks is even older.
There are a bunch of derivatives protecting from unexpected events:
default swaps, weather derivatives and insurance linked securities.
Prediction markets, in particular, were researched as instruments for hedging too.
Why our team is ready to implement it and how would we show that?
Our team already has designed and implemented solutions similar to all parts of this project and some of them were Catalyst projects. We have expertise with Cardano DApps and DeFi-like applications, including data backend, smart-contract construction, user interface and DApp deployment.
To make sure the community is interested in what we are creating we are going to publish a publicly available MVP every month. Also we would create and publish polls to understand which use cases are most important for Cardano community and will specifically reach DApps having the most potential for synergy.
Our team includes senior analyst, which would evaluate economical viability of our model.
What would we provide in the end?
Main deliverable for this project is public fully interactive MVP including interfaces for event detection, prediction market and insuring. It would work only on testnet and not prepared for production-level load.
[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?
Public DApp interface prototype
Events detection prototype
Market making and insuring interface
Community RFC and UX improvement
Full implementation for on-chain events detection decided by community
Final demo and beta version launch
[RESOURCES] Who is in the project team and what are their roles?
Gregory Gerasev -- Tech Lead and full-stack developer:
- Leading CEM Script project (funded in Fund 10), successfully closed 3 first milestones.
- Led the dev team for (first edition) of the Hydra auction project
- Led team implemented one of the first real-time betting applications on TRON blockchain.
- Led the dev team that implemented the Hydra backend for POCRE (funded in Fund 8).
- Helped develop the Cardano Transaction Library (CTL), including the Blockfrost backend for CTL (funded in Fund 8).
Anna Trofimova - Analyst
- Led application with DAU ~30m users analyst team
- Have degree in Sociology
She will work on blockchain insurance statistics and project economic viability and community reaction analysis.
Additional Front-end developer might be added later, but this is not necessary for development of project.
[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources
5 months of developer work - 100ADA (~45$) per hour - 80K ADA
2 weeks of community interaction and marketing work - 100ADA (~45$) per hour - 9K ADA
On outsourced design consulting and wireframes - 2400 ADA (~1054$)
On hosting and landing page/mail subscription SaaS - 100 ADA * 10 months - 1000 ADA (~439$)
Hosting lasts more than project development to make it available for community.
ADA exchange rate is taken from Google Finance on 12th of May.
[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?
To best of our knowledge our hour rate is smaller than most Cardano projects.
