Nsure Network Mainnet Migration: Incoming on March 31th
NSURE NETWORK Mainnet Release coming up, commencing on March 31st 8:00AM UTC as the first open Beta on Ethereum Main Network. Here’s all you should know about the Gradual Release:
Dear Nsureans, it’s been a great journey so far, one we couldn’t have achieved without you as early community supporters.
From the early Underwriter Program serving as simulation for users to grasp the first concepts around being the risk-taking counter-party, incentivised with real APR based returns in NSURE tokens; to the comprehensive developments and improvements englobed within the Alpha release on Kovan network from earlier this year.
Now it’s time for the awaited first Mainnet release of the platform and marketplace, to be first deployed as open Beta on the Ethereum Mainnet.
This article will guide you through all details you need to know in regards to when, how and why it will occur:
Gradual Release
The much awaited release will take place in 3 main events, distinguished by the main product segments within the Nsure Platform
- Capital Mining Launch
- Commencing March 31st 8:00AM UTC - Underwriter Module Release
- Commencing Rebalancing Period on April 7th 8:00AM UTC
- Incentive rewards starting April 10th 8:00AM UTC - Purchase Policy & Claim Process
- Released shortly after Underwriter liquidity is matured
- Including a 1st Batch Product release in collaboration with third party protocols and subvention program by Nsure Foundation
Similar to the launch of Nsure’s prior Alpha version you may have already witnessed, there’s a specific reasoning for why we have decided to aim for a gradual launch:
Given the sophistication of the model on which the Nsure Marketplace is built on, certain criteria need to be met at different stages in order to safely move ahead with a seamless launch.
Step one: Enough Liquidity to be bootstrapped within the dependant pools such as the Capital Pool and the different Underwriter pools, offering both suitable MCR (Minimum Capital Requirement) and one-sided liquidity to be seeded for the next step.
This will be split into two events as well, in order to properly attract, incentivise and reward early community & participants, explained in detail below.
Step two: Launching the purchasing-policy feature alongside the claim process, under which users will be able to start interacting with the other side of the marketplace in regards to demand for products. This will be in harmony with the launch on Open Beta of the on-chain claim processing model, under which selected community participants interact as Assessors for claim resolution based on submitted proof for each claim.
Now, lets go down into more details of the Mainnet Migration Roadmap and what you should expect:
Capital Mining
Capital Mining is the first step that will be taken for the migration, under which the structure and logic of the Capital Pool will be deployed on Ethereum Mainnet.
Mark the Date: March 31st 8:00AM UTC, the contracts will be deployed and mining rewards go live. Exact block height to be released pre-launch.
What to expect?
Participants will have the opportunity to deposit ETH into the Capital Pool, under which the capital mining rewards will be distributed. Unchanged from the deployment on Alpha, and as expressed in our WhitePaper, rewards will be mined at a rate of 1.8NSURE per Block, and distributed proportionally to all participants in the pool according to their stake.
Conditions:
Lets remind the associated risks and conditions attached to being a participant in the Capital Pool:
The Capital Pool plays a central role within the platform to support its core economic activity. Nsure tokens are issued as incentive for capital providers participating in the pool.
The Pool acts as a reserve for the ecosystem, under which it supports MCR capacity calculation, in other words increasing the capacity of maximum active policies that can be sold & held in the platform. If the Surplus Pool is lower than the MCR at any point in time, the remaining part would be locked from withdrawal from the Capital pool.
During this lock time (if any), participants still benefit from the mining rewards distributed along the way.
It is also important to note that this capital pool reserve is to be the second-in-line to cover any successful claim payouts, in the unexpected case of having the surplus pool have insufficient funds to be able to execute the integral amount of payouts.
General terms to prevent malicious front-running of any event are set, under which any participant will encounter a 14-day lock period, a countdown that commences ticking when the participant has deposited funds (nETH) into the capital pool.
Early Participant Benefits
As mentioned above, early community and contributors to the Capital Pool will benefit from the set structure of the gradual release. Because at first, no policies will be yet sold nor claims being processed, the above mentioned risks of exposure on deposited funds into the capital pool are excluded for the first days. Nevertheless, mining rewards will remain active, distributing at a 1.8NSURE/Block produced.
Needless to say, and given the proportional reward structure, earlier participants on launch that enter at lower TVL levels, will benefit from an increased share in the pool & mining rewards, which would be diluted as time passes expecting any increase in participation & TVL.
In other words, early community members that have been with us from earlier days that engage with the launch in time, will obtain an edge on participating in Capital Mining, prior to the next stages of the gradual launch!
Nice! Why?
Capital allocation within the model is of vital importance to service as liquidity to be used as capacity without over-leveraging the insurance model.
A healthy TVL increase during the first days of launch will facilitate to move along the gradual release and so be able to move forward with deployment.
As this is an opportunity for the Platform to attract new users, one of the benefits behind this type of launch is have newcomers get familiarised with the protocol, while earning rewards mined in the native platform token, NSURE.
Even tho this is catalogued as mining, the thought is to give these users a chance to obtain tokens that can soon after be utilised to stake and so underwrite products within the marketplace that would earn them additional rewards, paid out in ETH. The high rates of cash-flow and economic activity design within the model applied in the Nsure Network platform allows for a relatively unique aspect, under which Nsure tokens are put at stake to provide better capacity & pricing to insurance products, while these are rewarded in annualised percentage rates (APRs) which are paid in currencies like ETH, as the policy premiums are paid in such.
We see this as a core edge within the model, that will allow for sustainable user acquisition as the platform grows, and can benefit from it from day one.
Additional assets like stable coins and wrapped versions of BTC will be included and accepted for capital mining and means of payment for policies, as we move forward in development.
How to participate?
In order to participate, a simple two step process is required:
First convert ETH to nETH (Nsure-ETH); in order to further continue to approve the contract that will allow you to start mining:
Note: Do not convert all your ETH into nETH, leave some for transaction fees as you will need to confirm the nETH deposit to commence the mining. Also, you will have to approve the contracts only once, while the conversion from ETH-nETH will have to be done every time you would want to add capital into the pool.
Please keep an eye on our official channels to ONLY follow the right links to the open Beta domain to be released prior to launch.
Underwriter Module
For Underwriters, a migration is expected after the next epoch concludes on the Underwriter program launched in November.
This second step is vital for sourcing liquidity put at stake on the first batch of launched products to come, and will as well be incentivised to early participants.
When Underwriting goes live, we will make a call to all stakers and Underwriters that have successfully trained their skill during the Simulation Program and provide the liquidity needed for launch.
Additionally, Nsure Foundation will be granting subventions to a hand full of selected protocols of diverse risk categories, with the purpose of collaboratively increasing initial stages of capacity and pricing provision during the early stages of our platform launch. These selected protocols will be announced in a dedicated article, to be released shortly after Capital Mining is launched.
For the time between
Must know:
Underwriting will go live on April 7th, 8:00AM UTC, in synchrony with the Underwriter Program Simulation start of rebalancing mode.
For participants of the Simulation: The rebalancing period of 72h will proceed as usual, with rewards being mined until April 10th, 11:00AM UTC. Once concluded, the Simulation will remain open for users to withdraw at gas prices they would be comfortable with. Matching the end of the rebalancing period, an added incentive equal to the terms in the simulation will be rewarded for boosting initial liquidity to be bootstrapped.
This will occur prior to stage three of the programmed launch which includes the ability of purchasing policies, and remain open until liquidity is considered matured.
As the Underwriter module will go live prior to the ability of purchasing policies, and the core design in regards to the incentives given to underwriters is sourced from policies sold, this additional incentive will be a provisional reward period prior and during stage 3 launch, that will distribute rewards in analogy with the previously launched Underwriter program.
What does this mean?
Underwriters that participate prior to stage three of the scheduled gradual release (Purchase Policy & Claim process launch), will be rewarded at rates of 1NSURE/Block, i.e. there will be 5,760 tokens generated daily. For reward distribution you can see the reference from the Underwriter Program here.
Main differentiation towards the previous program is that rewards will be distributed based on a snapshot system, under which these will be claimed manually.
Once stage three is live and policies can be purchased within the marketplace, the expected risk/reward system sourced from 50% of the policy premiums, paid out in ETH will be born.
Any other benefits?
If you read our previous article on gas optimisations, you will be aware that we’ve adopted an update in the smart contract structure that will allow for up to 90% of reduction in gas fees vs the previously utilised model, more info here.
Available Leverage for underwriting on Mainnet is up to 10x, compared to the 4x available on the Simulation, dependant and limited based on product correlations. E.g. participants in this module that deposit 1,000NSURE for underwriting purposes, will enjoy up-to ten-fold power for underwriting products, hence granted the possibility to earn higher rewards by effectively having up to 10,000 NSURE allocated across products.
Common knowledge:
Underwriters are the counter party acting as first-in-line risk takers that underwrite policies from the products they individually select. Once purchasing policies is available, 50% of the premiums paid in ETH, stable coins or wrapped versions of BTC are allocated directly and proportionally to underwriting pool participants of the designated product. In exchange of the rewards, the risk at stake englobes the possibility of losing up to 50% of the staked tokens, proportional to the value of successful claim payouts.
We strongly encourage Underwriters to carefully evaluate the risks of every product they choose, by looking at the provided risk rating according to the N-SCOSS mechanism.
Purchase Policy & Claim Process
Once stages one and two are concluded, and enough MCR as well as liquidity on underwriting products are sourced, the platform should be considered ready to launch the last of the core features, being the purchasing insurance and its associated claim process.
This last stage of the open Beta will offer in premier the ability to obtain coverage against smart contract related risks on the first batch of listed protocols within the market place of Nsure Network.
A Grant program is in works, under which some selected 1st Batch protocols to be included will benefit from an open Subvention program sponsored by Nsure Foundation, with the goal to jointly promote, and boost initial capacity & pricing for these products.
Bounty Program
During the initial stages of Open Beta, we will perform a bug bounty program, incentivising early community participants to report any related issues, incentivised by a result-oriented prize given out by Nsure Labs in collaboration with Immunefi.
Risk Disclaimer
This Open Beta is intended to be a first release on Ethereum Mainnet of the Nsure Network risk marketplace, we prompt any participants to understand the associated risks, even after having undergone through previous audit with partners. Any deployed funds may be at risk, and do not recommend engaging with large asset transactions.
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.
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