NSURE ANNOUNCEMENT: Introducing Nsure Underwriter Program:

NSURE NETWORK will launch Staking as an Underwriter program, expected to go live as of November 18th 11:00AM UTC.

4 min readNov 13, 2020

Gitbook Guide to Nnsure Underwriter Program: https://docs.nsure.network/nsure-network/nsure-underwriter-program/guidelines

As you may have already read on our white paper or different media outreaches, underwriting insurance plays a central role in our platform. Traditional insurance models, as well as our own approach would not be able to function sustainably without Underwriters, risk-taking parties that provide capacity by influencing the supply-side of insurance products.

Our approach for Main-net launch bases it’s functionality on incentivising Underwriters with part of the premiums paid from policy buyers associated to the products one has decided to obtain exposure to; in other words staking NSURE tokens in exchange for a share of future earnings sourced from premiums, paid in ETH or stable coins.

Nevertheless, and until we launch Main-net, we’ve decided to provide a real-time simulation of risk exposure as an Underwriter, in which participants will be able to earn premiums in real time, based on their performance and capabilities of building up a strategy as risk-takers.
As this is intended to be a simulation, with educational purpose to familiarise our community and users with concepts that retail insurance clients had no access until now; we have set up an incentive program with payouts to be given in NSURE tokens.

Yes, that’s right; a derivation of staking is coming live to Nsure Network!

Lets dive into the mechanics of Gamified Staking:

10 Insurance Products to choose from (Pools)
Unique Simulated Demand (adapted as of TVL changes)
Dynamic Pricing Model
4x Leverage

In the program, users will be exposed to the movement of capital demand and supply. Such movement will impact the equilibrium price of the simulation, i.e. premium, based on which the minted tokens are distributed. Expected outcome for users is to obtain knowledge and get familiar with the Dynamic Pricing Model, and develop a better strategy of underwriting, competing against other participants for more rewards.

Rewards:

Analog to our capital mining model, we are taking following assumptions: For each Ethereum block produced, 1 Nsure tokens will be distributed proportionally to all staked tokens, i.e. there will be 5,760 tokens generated daily. The current circulating supply is 5.7 million Nsure.
As a reference, the average annual yield at a 10% staked/circulating supply ratio is about 371% APY (see calculation in the attached Excel on our Gitbook).
In contrast, in case of 50% staked/circulating supply ratio, the average annual yield would be estimated at 74% APY. The total return would vary accordingly, if less people participated and a different strategy is applied.

As this is a simulation with real-time reward incentives, yet no risks associated, we have adjusted our mining for this period from 2 to 1 NSURE per block. Once our full main-net version launches, rewards will be set at 2 NSURE per block as for miner rewards.

Reward Distribution

Total premium is calculated by summing up the premium for each project, which is calculated by multiplying the Capital Demand and the Premium Rate. The reward will be firstly distributed proportionally to each project based on the simulated contribution of premiums, and then be distributed to each participant proportional to the number of tokens staked.

We have created this program with a specific set of rules, to encourage participants to train and spot better underwriting strategies together with their performance, which to a certain extent is represented by premium though it is not the only consideration. You can perform above average, if you are able to capture the price sensitivity to capital demand and supply, and distribute your holdings wisely among the projects. Such distribution rules differ from our Model to be applied upon platform launch.

Staking Epochs :

As for the distribution model and lock-up cycles, we have scheduled a 14-day model which will repeat over in following schedule:

During the locked time, rewards will be generated, able to withdraw, un-stake and rebalance on the 3-day period to follow after. We strongly suggest to restructure the strategy set for your Underwriting, as data will update accordingly to simulation parameters.

We prompt anybody interested to participate in our Underwriter Program to read through our documentation released on the NSURE GITBOOK
There you will find a full fledged section on the basics you should know about insurance (Nsure Insurance 101), a deep Guide to our Underwriter Program and an Illustration Example in order to better structure your own strategy as an Underwriter.