Uno Re announces integration with Chainlink
With great enthusiasm, we are announcing our upcoming integration with Chainlink, the industry-leading decentralized oracle network. As a decentralized reinsurance platform, Uno Re plans to leverage the widely used Chainlink Price Feeds across Binance Smart Chain (BSC) and Polkadot to price policies, risks, and/or payouts in various crypto and fiat currencies. Additionally, we will utilize Chainlink’s flexible framework to securely expand our offering to various parametric insurance covers, such as weather and flights, using an aggregation of premium data feeds supplied by Chainlink oracles.
We selected Chainlink because it’s a time-tested decentralized oracle infrastructure that can be easily integrated to obtain high-quality data about a wide range of assets and events. Chainlink already secures billions of dollars in value across DeFi and Insurance, with proven resistance to various unexpected situations like API downtime, flash crash outliers, and data manipulation attacks via flash loans.
Uno Re, Insurance for Insurance Providers
Uno Re is the world’s first risk trading reinsurance platform built on the blockchain and open to the public. Reinsurance allows insurance policy writers to offload all or part of their risk to another entity, the reinsurer. Essentially Uno Re offers insurance for insurance companies, disrupting this highly profitable risk trading market currently controlled by a few large corporations.
Price Feeds for Crypto-Insurance Protocols
Initially, Chainlink will provide Uno Re’s smart contracts with real-time Price Feeds related to various crypto-insurance protocols reinsured by Uno Re. In the case of an insurable event on a crypto-insurance protocol reinsured by Uno Re, our Smart-Price reinsurance cover gets triggered and automatically pays out to cover such protocols in their native token. Thus, Uno Re needs price feeds in which the crypto-insurance protocol’s token is paired against funds stored in Uno Re’s liquidity pools.
Chainlink Price Feeds were a natural choice as our go-to oracle solution across all Uno Re coverage products, providing several guarantees on the oracle’s secure and reliable performance, such as:
- High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to aggregated price data from hundreds of exchanges, weighted by volume, and cleaned from outliers and wash trading. Chainlink’s data aggregation model generates accurate global market prices in a manner resistant to the failures of a single or small set of data providers.
- Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record for reliability, even during high gas prices and infrastructure outages.
- Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or the oracle network.
- Reputation — Chainlink provides a robust reputation framework and set of on-chain monitoring tools that allow users to independently verify the historical performance of node operators and oracle networks and check the real-time prices being offered.
Chainlink Data Feeds for Parametric Insurance Covers
In addition to Price Feeds, Chainlink’s highly flexible infrastructure allows us to acquire premium data from an authenticated API. By having on-chain access to high-quality data from highly available and financially incentivized APIs instead of low-quality data from free-tier APIs, our platform can offer parametric insurance products where claims are automatically triggered and settled using data. For example, users could create insurance contracts with parameters centred around earthquake data, such as triggering an insurance payout automatically in the event that an earthquake registers 6.0 or higher on the Richer scale. Automated insurance contracts like these reduce overhead, both for the user filing the claim and the insurance underwriter verifying it.
In this new paradigm, there’s no effort needed by either party other than the initial setup. The reinsurance contract runs automatically on the blockchain and is triggered reliably and truthfully by Chainlink oracles. Since Chainlink can aggregate data from multiple premium data providers using a decentralized network of oracle nodes, the data triggering the parametric cover can be considered a highly validated truth, eliminating verification overhead. This is critical for insurance that triggers automatically because if the trigger data cannot be completely trusted, expensive manual verification would need to be introduced, negating the massive benefit of automation.
“We’re thrilled to be actively integrating Chainlink to build one of the first successful reinsurance platforms on the blockchains, bringing a truly innovative new primitive and risk management product to the DeFi and on-chain insurance market”, stated Jaskanwar Singh, CEO & Co-Founder of Uno Re.
“Chainlink’s time-tested Price Feeds and unique ability to source data from password-protected APIs empower us to offer a wide range of reinsurance covers that users can truly trust, both because the data pricing and executing them is of premium quality and the infrastructure that secures them is robust and without any central point of failure.”
About Uno Re
Uno Re will be the world’s first decentralized reinsurance platform powered by Polkadot, allowing the community to invest and trade in ‘risk’ and receive sizable returns on their investments in one of the safest asset classes in the world. The platform will break barriers to entry for the retail investor by doing away with the historic pre-requisite of absurdly high capital generally needed to invest into the market while also introducing much-needed transparency into the industry as a whole. UnoRe will also allow the community to propose innovative insurance products to the space, thus propelling a new generation of Insurtech companies powered by the UnoRe ecosystem.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains and real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink introduces 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.