Last updated 2 months ago
Fida's real world clients require BTC support, Oracle Triggered, and KYC/AML compliant features to come onboard and establish Cardano as a leading platform for regulated, decentralized insurance.
We will add multi-asset support, oracle integration, and KYC/AML to our exisiting open source contracts.
Please provide your proposal title
FIDA: OnChain Insurance
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?
Fida's real world clients require BTC support, Oracle Triggered, and KYC/AML compliant features to come onboard and establish Cardano as a leading platform for regulated, decentralized insurance.
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
Please provide details on the intellectual property (IP) status of your project outputs, including whether they will be released as open source or retained under another licence.
We will be releasing the source code under 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 launched in the market (whether by you or others).
Compared to our adversaries on other chains, Fida is able to redefine how the insurance industry operates! We leverage blockchain to dramatically reduce the time it takes for claims to get fully processed. From oracle directed payouts, to smart contract guaranteed payouts.
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.
ou 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:
Multi-Currency support
Oracle triggered claim support
KYC+AML card purchase and exchange enforcement
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 USDM 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:
make-new-policy
issue-claim
accept-claim
sell-fida-cards
claim-premium
pay-for-claim
unlock-collateral
collect-claim-payment
Evidence of Completion
The following transactions will be available on-chain with CNA asset:
make-new-policy
issue-claim
accept-claim
sell-fida-cards
claim-premium
pay-for-claim
unlock-collateral
collect-claim-payment
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:
make-new-policy (oracle specific setup parameters)
issue-claim (oracle data enrichde claims)
accept-claim (requiring oracle data to be accepted)
Evidence of Completion
The following transactions will be available on-chain with parametric oracle input:
make-new-policy (oracle specific setup parameters)
issue-claim (oracle data enrichde claims)
accept-claim (requiring oracle data to be accepted)
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:
make-new-policy (kyc specific setup parameters)
pay-for-policy (kyc specific parameters included success)
pay-for-policy (kyc specific parameters included failure)
pay-for-policy (kyc specific parameters missing failure)
Evidence of Completion
The following transactions will be available on-chain with parametric oracle input:
make-new-policy (kyc specific setup parameters)
pay-for-policy (kyc specific parameters included success)
pay-for-policy (kyc specific parameters included failure)
pay-for-policy (kyc specific parameters missing failure)
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:
Product Owner $58p/h
Architect $60p/h
UI/UX Designer $30p/h
Backend + Plutus Developer $40p/h
Frontend Developer $35p/h
Automated Tester $30p/h
Over the 6 month period, these costs settle to:
Product Owner $6,960.00 Working full time (120 hours).
Architect $6,600.00 Working part time (110 hours).
UI/UX Designer $6,000.00 Working part time (200 hours).
Backend + Plutus Developer $40,000.00 Working part time (1000 hours).
2 Frontend Developers $22,400.00 Working full time (320 hours each).
Automated Tester $10,800.00 Working part time (360 hours).
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:
Product Manager $1,740.00
Architect $3,000.00
UI/UX Engineer $1,200.00
Backend + Plutus Developer $16,000.00
Frontend Developer $4,200.00
Automated Tester $3,600.00
The AML+KYC work has been budgeted as:
Product Manager $3,480.00
Architect $3,000.00
UI/UX Engineer $3,600.00
Backend + Plutus Developer $16,000.00
Frontend Developer $14,000.00
Automated Tester $3,600.00
The Multicoin work has been budgeted as:
Product Manager $1,740.00
Architect $600.00
UI/UX Engineer $1,200.00
Backend + Plutus Developer $8,000.00
Frontend Developer $4,200.00
Automated Tester $3,600.00
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.
I confirm that evidence of prior research, whitepaper, design, or proof-of-concept is provided.
Yes
I confirm that the proposal includes ecosystem research and uses the findings to either (a) justify its uniqueness over existing solutions or (b) demonstrate the value of its novel approach.
Yes
I confirm that the proposal demonstrates technical capability via verifiable in-house talent or a confirmed development partner (GitHub, LinkedIn, portfolio, etc.)
Yes
I confirm that the proposer and all team members are in good standing with prior Catalyst projects.
Yes
I confirm that the proposal clearly defines the problem and the value of the on-chain utility.
Yes
I confirm that the primary goal of the proposal is a working prototype deployed on at least a Cardano testnet.
Yes
I confirm that the proposal outlines a credible and clear technical plan and architecture.
Yes
I confirm that the budget and timeline (≤ 12 months) are realistic for the proposed work.
Yes
I confirm that the proposal includes a community engagement and feedback plan to amplify prototype adoption with the Cardano ecosystem.
Yes
I confirm that the budget is for future development only; excludes retroactive funding, incentives, giveaways, re-granting, or sub-treasuries.
Yes
I Agree
Yes
The team includes Cardano veterans.
Rodolfo Hansen has been active in the community since 2019, participating in the community on twitter, live events, project catalyst itself as well as briefly being a Stake Pool Operator.
We have already taken the protocol through its initial stages (as evidenced by prior Catalyst funds), demonstrating the capability to deliver decentralized insurance solutions on Cardano. This proposal is a continuation, not a beginning, making continuity critical to cover potential customer requests.
Although interrupted by external factors, we have shown relentless dedication and continuous development across the years underscore a long-term dedication to building on the Cardano blockchain, which ensures the project will see a successful completion and long-term maintenance.