Last updated 5 months ago
Open Source Risk Transfer Scripts Features: Multi-Asset, Oracle Triggered, KYC/AML Integration.
We will extend our currently open source Smart Contracts to support USDM/Bitcoin, integrate with Charlie3/Orcfax Oracles, and support KYC/AML/DID features.
This is the total amount allocated to Fida: Insurance Risk Transfer Contracts v-next.
Please provide your proposal title
Fida: Insurance Risk Transfer Contracts v-next
Enter the amount of funding you are requesting in ADA
100000
Please specify how many months you expect your project to last
8
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Open Source Risk Transfer Scripts Features: Multi-Asset, Oracle Triggered, KYC/AML Integration.
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
Yes
Describe any dependencies or write 'No dependencies'
We will be working closely with Sundial (https://www.sundialprotocol.com/) and Charli3 (https://charli3.io/) on allowing Fida to operate with Bitcoin and get triggered by Oracle events
Will your project's outputs be fully open source?
Yes
License and Additional Information
Apache License 2.0
Please choose the most relevant theme and tag related to the outcomes of your proposal.
Financial Services
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
Fida Finance is the first fully onchain soverign Insurance protocol.
We are working hard to enable the cardano community to both recieve insurance products and participate in the investment of insurance vehicles.
Our protocol introduces a new un-correlated asset class to the cardano blockchain. These cards represent insurance contracts that facilitate risk diversification, trading, and democratize insurance investing. This will both increase TVL, and allow us to participate in establishing deeper on-chain liquidity, but also intoduce new RWA assets on-chain for trade
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
You can find our working prototype at https://dev-fida.binar.app/marketplace as well as a working CLI implementation in our github release page: https://github.com/fida-services/fida-contracts/releases/tag/0.0.4
What we will deliver are several (2 or 3) version updates to the smart contracts and CLI to incorporate these 3 changes:
Describe realistic measures of success, ideally with on-chain metrics.
We can still measure several key indicators on the preview testnet to gauge the project's impact through clearn on-chain quantitative metrics:
USDM / Bitcoin Policy Contracts on-chain.
Compound transaction on-chain with a trigger from an external UTXO.
Failed card purchase transactions due to missing KYC data.
Failed card purchase transactions due to disallowed KYC data.
Sucessful card putchar transactions due to correct KYC data.
Please describe your proposed solution and how it addresses the problem
By extending our smart contracts to support Cardano Native Assets and KYC/AML mechanimsms, we enable real world insurance products to fully operate within the cardano blockchain. Additionally, by integrating off-chain oracle data into our Risk Transfer Protocol, we seek to further unlock capital efficiency for our customers and eliminate enforcement friction in the evolution of an insurance policy contract's lifecycle.
Our approach stands out by leveraging the decentralized nature of the Cardano Ecosystem to democratize insurance and promote financial inclusion. starting with the robust on-chain Risk Transfer Protocol, we can empower a diverse range of stakeholders, including individual investors, small businesses, and community organizations, to participate in the insurance market.
This inclusivity will not only unlock new sources of capital but also foster competition, driving down costs and expanding coverage options for individuals and communities that have historically been under-served. Moreover, by integrating on-chain Oracle data, we can completely remove this contentious point of error and enable the insured to work with the funding insurers directly, confidently and without any delay.
This drives Cardano's key driver for financial inclusion and individual autonomy. We will have a protocol that can be used by all people: from insurance agencies and institutional investors, to small farmers and lenders, as the protocol can be deployed on multiple regulatory environments.
Please define the positive impact your project will have on the wider Cardano community
Integrating Insurance Tech into the Cardano Ecosystem aligns with Cardano's core values of sustainability, transparency, and inclusivity. By supporting this proposal, Cardano can demonstrate its commitment to leveraging blockchain technology to address pressing global challenges. Furthermore, this endeavor aligns with the United Nations Sustainable Development Goal (SDG) 10, which calls for reduced inequality. By bringing insurance solutions to under-served populations and enabling participation from diverse stakeholders, Cardano can contribute significantly to achieving this goal and solidify its position as a leader in driving positive social impact.
The project's impact on the Cardano ecosystem goes beyond funding the project team. It brings tangible value by providing a real-world use case for Cardano's technology, demonstrating its security, and applicability to the insurance sector. Fida has the potential to attract significant usage and transactions within a reasonable time-frame. While specific numbers may vary based on market adoption and external factors, we expect Fida to attract a substantial number of users and facilitate a considerable volume of insurance-related transactions.
The introduction of Fida and Insurance Tech to the Cardano ecosystem will position Cardano as a leading blockchain platform for insurance solutions. It will foster partnerships with insurance companies, brokers, and investors, further strengthening the ecosystem's reputation and reach. Additionally, by addressing the challenges of limited capital allocation and competitiveness for smaller investors in the insurance market, Fida will promote financial inclusion and reduce inequality, aligning with Cardano's core values.
In the proposal we will add support for funding policies in Cardano Native Assets. This includes on-chain forms of USD and Bitcoin which are in high demand for bitcoin denominated insurance policies around the world.
We will also allow for the construction of parameter specific market places on-top of this developed parametric risk-transfer protocol. Particularly we will continue past the protocol onto a Fida web application which brings in participants from the insurance space to handle their business on top of the Cardano Block Chain
By introducing Insurance Tech to the Cardano Ecosystem through a Risk Transfer Protocol, leveraging AML & KYC we seek to introduce regulated (re)insurance contracts onto Cardano. Unlocking capital efficiency for everyone, creating a more inclusive and equitable insurance landscape in as much as the regulatory environment permits.
One of the key problems we aim to solve is the lack of capital willing or even able to allocate in the insurance market. Traditional insurance companies have dominated this sector due to overhead and upfront costs. As a result, many under-served communities and individuals face significant barriers in accessing adequate insurance coverage. With the added transparency of on-chain execution, and contract review alongside the potential for extended liquidity post investment we believe we can attract the needed capital the insurance contract is lacking.
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?
We have already delivered the first steps towards this in the form of our open source contracts and CLI tool:
https://github.com/fida-services/fida-contracts/releases/tag/0.0.4
Thus, we possess the necessary capabilities and track record to deliver our project with high levels of trust and accountability. Our existing capabilities demonstrate why we are best suited to undertake this initiative and effectively manage the allocated funds.
Technical Expertise: We are working with Developers from BinarApps who worked on Byron Network and are also contracting directly with IOG. With them, we have already made significant progress in the development of the Risk Transfer Protocol on Cardano. The pseudo-code for the protocol, utilizing the concepts available in Plutus is already written. Furthermore, we have already established a codebase for two of the validators in actual Plutus v2 The creation of which can be seen in these TX: . This technical expertise showcases our deep understanding of the Cardano ecosystem and our ability to leverage its features effectively.
Prior Commitment and Dedication: Despite limited resources and time constraints, we have been actively working on this project. Currently, we allocate around 4 hours a week to its development. However, with the Catalyst Fund support, we will be able to dedicate our full-time efforts to building out the contracts. This commitment demonstrates our passion and determination to deliver the project successfully.
Transparent Project Management: We have a clear project management structure in place to ensure transparency and accountability. We maintain regular communication channels to provide updates on the project's progress, milestones achieved, and any challenges faced. By adopting an open and collaborative approach, we foster trust and accountability among our team members and stakeholders.
Proper Fund Management: We recognize the importance of managing funds properly and maintaining financial integrity. To ensure this, we have established robust financial processes and controls. These include implementing clear budgeting procedures, tracking expenses, maintaining accurate records, and adhering to regulatory and compliance standards. We understand the responsibility associated with handling allocated funds and will prioritize their appropriate usage for the project's advancement.
Milestone Title
Multi-Coin Support
Milestone Outputs
Risk Transfer Smart contracts with Cardano Native Token Supprt.
In this milestone we will deliver our existing full set of validators for the insurance policy script lifecycle extended with support for CNA.
On testnet the asset relevant transactions will be auditable.
Acceptance Criteria
The following transactions should be available on-chain with CNA asset:
Evidence of Completion
The following transactions will be available on-chain with CNA asset:
Delivery Month
2
Cost
20000
Progress
20 %
Milestone Title
Oracle Integration
Milestone Outputs
Risk Transfer Smart contracts with external activation support for claims sub-lifecycle.
In this milestone we will deliver our existing full set of validators for the insurance policy script lifecycle extended with support for parametric insurance claims payout mechanisms.
On testnet the oracle relevant transactions will be auditable.
Acceptance Criteria
The following transactions should be available on-chain with parametric oracle input:
Evidence of Completion
The following transactions will be available on-chain with parametric oracle input:
Delivery Month
4
Cost
30000
Progress
50 %
Milestone Title
KYC & AML Integration
Milestone Outputs
Risk Transfer Smart contracts with external activation support for claims sub-lifecycle.
In this milestone we will deliver our existing full set of validators for the insurance policy script lifecycle extended with support for KYC+AML at the initial policy lifecycle.
On testnet the KYC relevant transactions will be auditable.
Acceptance Criteria
The following transactions should be available on-chain with parametric oracle input:
Evidence of Completion
The following transactions will be available on-chain with parametric oracle input:
Delivery Month
8
Cost
50000
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
The monthly costs for this project by role is:
Over the 6 month period, these costs settle to:
For a total of $92,760.00 which is (at the time of writing) ₳100,544.88 which is slightly above the requested funds. The missing balance as well as all additional costs (not budgeted for here) will be handled as needed out of pocket e.g. server costs, online service fees for products like gitbook, github, and google workspace, our own time, incidentals, etc.
This breakdown is in the interest of both simplicity and transparency for the community.
We will use the milestone payment mechanism internally to ensure costs do not escalate beyond our request and further enhance our engagement towards successful outcomes.
Feature Wise:
The Oracle Integration work has been budgeted as:
The AML+KYC work has been budgeted as:
The Multicoin work has been budgeted as:
How does the cost of the project represent value for the Cardano ecosystem?
The cost of the project represents value for money for the Cardano ecosystem in several ways:
Potential Impact: By bringing Insurance Tech to the Cardano Ecosystem through a Risk Transfer Protocol, the project has the potential to unlock significant value and opportunities. Insurance technology can provide greater financial inclusivity, risk mitigation, and economic stability, aligning with the goals of reducing inequality. The long-term benefits and positive impact of this integration can outweigh the initial costs.
Market Potential: The insurance industry is a multi-trillion-dollar market globally. By leveraging the Cardano Ecosystem to introduce Insurance Tech, there is an opportunity to tap into this market and create new revenue streams. The costs associated with the project are justified by the potential market growth, attracting new participants, and expanding the ecosystem's reach.
Future Returns: While the upfront costs may seem significant, they are an investment in the future growth and development of the Cardano ecosystem. The integration of Insurance Tech can attract new users, increase transaction volumes, and enhance the overall ecosystem's productivity and value. The long-term returns and benefits generated by this project can far exceed the initial expenditure.
Terms and Conditions:
Yes
The same theam that has been working on FiDa since 2021.
Rodolfo Hansen - Co-Founder, CEO
https://www.linkedin.com/in/rodolfohanseni
Sławomir Śledź - Co-Founder, CTO
https://www.linkedin.com/in/s%C5%82awomir-%C5%9Bled%C5%BA-aa857193/