Day By Day, the Australia-based company revolutionizing the insurance industry through Web3, will launch its underwriting module on Testnet. This will show users how to invest in liquidity pools responsible for backing the risks of the minted NFT policies and providing income to investors. In this article, we offer you an introduction so that you can know all the details.
Introduction of the underwriting module
Day By Day is revolutionizing the insurance industry thanks to Web3 technology that allows users to take out flexible and customized insurance. The company continues to progress on its roadmap with the launches of the different phases that make up its platform. After Testnet launched its module for minting “NFT Policies” which allow users to become real policy makers and earn passive income when someone takes out coverage without taking any risks, now it’s the turn to proceed to the next stage to make way for liquidity pools that provide accident event support coverage.
The liquidity pools underwritten via the underwriting module make it possible to support the differently shaped NFT policies, Dawn of a new era where users are actively involved in the various procedures related to insurance. In this way, if an accident event occurs in a particular policy, these pools are responsible for providing the necessary liquidity to respond to the risk.
This creates an efficient framework so that people can have peace of mind thanks to blockchain and secure their assets with the necessary guarantees. This technology offers full transparency, so the processes are guaranteed and always carried out with support. Thanks to powerful smart contracts, Day By Day ensures that policies written are always backed 1-to-1 by underwriting, so they can provide exact coverage at all times.
Operation of the underwriting module and launch of the first liquidity pool
Day By Day initially chose the Algorand network to launch its underwriting module on testnet due to its powerful characteristics; and has formed a close partnership with Algomint to operate on the goUSD asset. This choice allows the Web3 insurance platform to have all the necessary security guarantees to carry out the underwriting service. On the other hand, Algomint offers an intuitive interface so users can get the goUSD asset quickly and easily without any complications.
The Underwriting module is designed to create common underwriting funds that users can provide liquidity to. In this way, the necessary support for the policies is formed by the different pools, which is an innovative and disruptive use case for the Web3 technology. Users who subscribe to the various liquidity pools, in turn, receive a percentage of the insurance benefits, resulting in passive income for them.
What will the process look like to provide the first pools with liquidity?
Once the underwriting module is launched on testnet, users can start providing liquidity to the first pools. Consequently, it was decided to trade the goUSD asset (due to its properties); The first step is to walk Algomint platform and make a swap (exchange) from USDC to goUSD via Pera Wallet. At this point you can already jump into the day-by-day underwriting module, connect your wallet and start subscribing to the different liquidity pools.
After receiving your goUSD You can enter those Underwriting module, once started; and you will find an intuitive interface that the Day By Day team customizes in detail, where you can indicate the amount you want to grant liquidity to the different pools available. In this way, you become an insurance investor 3.0 and can claim premiums at this very moment. In turn, the team has developed an innovative LP token called “DBD LP” that has unique properties to graphically visualize your investment.
Wealth and liquidity guarantees in the pools via the “DBD LP”.
Desiring to create intuitive processes and interfaces for users to have a pleasant experience, Day By Day has developed the asset «DBD LP» which you can see after subscribing to a specific liquidity pool. This will allow you to See in real time all the indicators of your investment in a graphical way and is responsible for generating revenue for you. This asset combines the best of NFT and LP tokens to generate a better user experience.
This “DBD LP” in turn forms your position within the liquidity pool. In order to provide the insurance platform with the necessary security and to ensure that the policies are never left without cover, Users cannot withdraw their liquidity after the subscription is complete, but they can sell their position to someone else by transferring the «DBD LP». This ensures support for minted NFT policies at all times and provides investors with a form of trading.
On the other hand, Day By Day takes security within the platform very seriously, which is why it has developed a mechanism that guarantees that means are available to support the policies, even in the face of a vulnerability by malicious actors. This way, a percentage of the subscriptions made through the Underwriting module are allocated to a specific wallet that protects the funds in case of a possible hack.
last words
We hope that this introduction has helped you to better understand the procedures and everything that comes day by day. When the Underwriting Testnet rollout is underway, we will share more details about it with you.
We also remind you that a 20% discount is available in the Minting of NFT policies, burning 10% of DBD tokens. Don’t miss it!
About day by day
Day By Day is decentralizing and democratizing the global insurance industry. Utilizing emerging technologies, the first-of-its-kind insurtech platform enables a new era for insurers to influence investments while delivering on-demand and hyper-personalized insurance products to customers.
Insurance companies can issue insurance policies (NFTs) that generate passive income and/or invest in subscription pools (DeFi) to generate a return on investment.
The InsureFi industry will offer next-generation insurance that is private, transparent and accurate. Built on blockchain and powered by AI, Day By Day removes current insurance processes and administrative constraints to provide customers with value and security.
For more information visit: https://daybyday.io/
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.