Nsure Network Integrates Chainlink Price Feeds to Power its Decentralized Insurance Platform
We are excited to announce that Nsure is integrating the Chainlink Price Feeds, starting with ETH/USD on Alpha, to determine mining rewards between capital pools, calculate the costs of insurance cover, and ensure a secure and reliable liquidation mechanism and automatic rebalancing of pools. As our recommended oracle solution, Chainlink will provide Nsure with decentralized on-chain price feeds for assets used in our capital pool, as well as aid in the potential development of future insurance products such as weather & natural catastrophe coverage built using weather and seismic data.
Nsure is an open marketplace to trade insurance risks where a Dynamic Pricing Model determines premiums — When capital supply is high, the premium rate will be low; when demand is high, the premium rate will increase; and the premium rate is sensitive to the amount staked.
As an open platform, any user can stake capital to cover insurance policies and earn a portion of the insurance premiums based on the amount they stake in the pool. Nsure quotes users wanting coverage a dynamic price depending on the amount of coverage available in the capital pool. The supply pool and cost of coverage are interdependent with a variety of assets supported, which require reliable and secure price feed oracles to calculate various costs and payouts.
Additionally, Nsure claims require accurate price feeds to ensure that payouts are fully administered. When the claim assessment process is over, the platform executes the payout function. If the surplus pool is not enough to cover the total payout, the remaining balance will be paid out from both the stablecoin and the Ethereum capital pools proportionally to better serve the community. Thanks to the Chainlink Network, Nsure Network’s Surplus and Capital pools will be monitored in real-time and automatically utilized to cover any remaining balance.
The smart contract calculates the amount to convert using the Chainlink ETH/USD Price Feed, as well as other Chainlink Price Feeds for determining coverage costs and reward payouts. After reviewing several oracle options, we selected Chainlink because it provides a multitude of assurances to our users, including:
- High-Quality Data: Price data is sourced from premium off-chain data aggregators, ensuring a volume-adjusted price aggregated across all exchanges.
- Decentralized: Price Feeds are decentralized at both the data source and oracle level, providing high availability and manipulation resistance.
- Secure Nodes: All oracle nodes are run by known and experienced blockchain DevOps, bringing users reliable services with protection against Sybil attacks.
- Proven Solution: Chainlink infrastructure already secures billions in value on mainnet across DeFi, including leading projects such as Aave and Synthetix.
Chainlink Price Feeds are also supported by real-time monitoring via open visualizations, which any user can independently use to verify they are getting a fair market exchange rate.
Future Integration on Catastrophes
Given the proliferation and growth of DeFi insurance as a parallel financial ecosystem, we see the potential of offering parametric protection against natural catastrophes on the Nsure Network with support from Chainlink. With access to live decentralized data feeds for metrics like atmospheric data, Nsure underwriters can properly access and price policy risks, therefore, improving the overall capital efficiency on the Nsure platform.
With this integration, insurance payouts for natural disasters can be dealt with in a decentralized and accurate manner, avoiding the need to rely on any central party for resolution. It’s one of our core commitments at Nsure to be able to provide a fully on-chain insurance coverage model for our community of users, allowing for immutable automated insurance products to be accessed.
As oracle manipulation and malfunction became one of the major sources of attack on DeFi projects, Chainlink is the most secure and reliable partner in the market for decentralized data feeds, and will help Nsure establish high standards for mitigating potential oracle risks.
Chainlink is the most widely used and secure way to power universal smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
About Nsure Network
Nsure is an open insurance platform for Open Finance (DeFi). The project is inspired by Lloyd’s of London, a market place to trade insurance risks, where premiums are determined by a dynamic pricing model. Capital mining is implemented to secure the capital required to back the risks at any point of time. To learn more about Nsure Network go to Nsure.Network or follow us on Twitter or Telegram.