yEarn – the leading yield aggregator – announced yinsure.finance, a new kind of tokenized insurance.

 

Baked into yInsurance are three three core components:

  1. Insurer Vaults – Liquidity Providers (LPs) providing insurance.
  2. Insured Vaults – These hold the tokenized asset being insured
  3. Claim Governance – A way to create a claim by staking their yiUSDT.

With yInsurance, any asset or it’s interest-earning counterpart can be insured. This means not only DAI can be insured, but also it’s composite assets like Compound DAI (cDAI), Aave DAI (aDAI) and yEarn DAI (yDAI).

The first Vault will be yiUSDC. LPs provide USDC and earn initiation and weekly fees paid by insurees. Should a claim be approved, USDC is deducted from the vault and paid out to the claimant. Should LPs decline valid claims insurees will move out and LPs will not be profitable. Thus, forcing LPs to act in good faith.

This design is similar to that of debit orders. Simultaneously the first insurer vault will be USDC, while the first insured vault will be wrapped yCRV from yVault.

Lastly, While there was no mention of it in the article itself, this product will most likely will not require users to go through KYC. This is worth noting as the biggest alternative is Nexus Mutual. While the mutual provides a multitude of more coverage, it does require users to undergo KYC in order to take out and file a claim.

Andre the Giant

Perhaps the biggest thing which caught people off-guard was how quick Andre managed to push this out. He tweeted this and within the hour had this poll started. Less than five hours later he had this primer ready to go.

Andre is considered somewhat of a rockstar in the DeFi space and continually living up to that reputation. Despite testing in prod, he has made it clear people should not blindly follow him. His integrity and work ethic have earned yEarn a community seal of approval and that price of YFI seems to be acting as such. On the back of yInusrance being announced, YFI is up 27% and nearly 100% in the past week.

Now, the project continues to move forward as new proposals look to keep Andre motivated, including a proposal from the community to reimburse him for nearly $80k worth of gas costs incurred since yEarn’s inception.

If one thing holds true, yEarn governance continues to be one of the most active in the DeFi ecosystem to date, leading many to theorize that soonTM 1 YFI will equal 1 BTC in price.

To stay up with yEarn, follow the project on Twitter here or join the governance forum. To stay up with Andre Cronje, follow him on Twitter here.