Nsure Network’s Alpha Underwriter Module on Kovan testnet environment is now available for testing here
Dear fellow Nsureans, after the pre-launch of our Alpha on Dec 2020, we’re glad to present you with our latest update on our development roadmap. With enough Nsure test tokens minted, the Underwriter Module is now officially live! You will now be able to experience the vertical of underwriting risks among different Protocols.
To start underwriting, make sure you have mined Nsure test tokens in your wallet. The mining process can be learned from here.
The first step of underwriting is to deposit the Nsure test tokens into the underwriting smart contract. Once the depositing step is done the total Deposit “staking power” will appear under the Holdings’ section.
Secondly, identify protocols attractive to your risk/reward appetite & provide coverage capacity as an underwriter (Tip: Security Rating and the risk assessment map may help you to analyze potential candidates for your underwriting portfolio)
Underwriting profit is directly related to the likelihood of claim out of an attack to project’s smart contract. We’ve assessed the smart contract risk of each listed project and indicated the security level with a number named Security Rating for your reference.
Security Rating measures the code security based on five perspectives which are correlated to either the likelihood or the severity of an attack event. The five perspectives are as follows.
1. History & Team
Rating factors examined includes project age, historical attack, team anonymity
Rating factors examined includes Total Value Locked, type of business, infrastructure
Rating factors examined includes audit transparency and scope, audit results, audit firm credibility
4. Code Quality
Rating factors examined includes code documentation, quality of test
5. Developer Community
Rating factors examined includes bug bounty program, issues raised by community
We grade each perspective with a score ranging between 0 to 100. Weights are assigned to each perspective to quantify its relevance with code security. According to the weighted average, each project’s security rating is determined and symbolized by an integer (1 to 5). A higher Security Rating indicates a more positive view on the project based on our assessment standards.
You can find the detailed assessment of the above-mentioned 5 perspectives by clicking the Security Rating score of each project.
Then use your deposited tokens to stake in your desired products. You can leverage up by staking across: 1) more less-correlated products 2) higher rating products.
Different from the Underwriter Program, which you might have been familiar with, the leverage granted to each underwriter is not a constant level but based on his actual portfolio. Leverage could be increased by staking across more less-correlated and higher rating products, to lower the staking power used.
Staking power used is calculated by the formula below
Where is the Leveraged Staking for project i, and is the correlation coefficient between project i and j. The leveraged staking is the product of your real staking one project and the leverage factor for this project.
The introduction of leverage factor is to credit low risk project by encouraging more staking on them as they consume less staking power from underwriters, and vise versa. The existence of correlation between projects accounts for the following facts in DeFi industry–
1) Developers forks or refers to existing projects’ code so there is similarity among projects
2) Out of the similarity in structure, projects of same business type tends to be vulnerable to same hack method
3) Projects could share oracle risk if they are fed prices from the same oracle
4) Composability risk out of the lego structure of DeFi — collapse of underlying project fails the upper level projects, especially for projects with announced collaboration
After adding staking into your selected projects, click “Confirm” and the staking power left & leverage used will be calculated. An error message will pop out if you overuse your staking, so you could either lower your staking or diversify it into more projects.
Lastly, monitor your portfolio returns and rebalance from the “My Portfolio” section.
You can check your staking provision under “My Portfolio” section. If you would like to adjust the provision, unstake your staking and wait for 20mins before restaking. The 20 mins is an example of a much longer lock period to be used in the official version, so underwriters should be conscientious about this when managing their portfolio.
Reference addresses for Nsure Network Alpha:
Nsure Test Token: 0x6cf83f10234ac1db01baed7e45c52a59c9c66a3b
nETH Minter: 0x536853c65785d71d6b1bed9968f66b94a9233038
nETH Token: 0x536853c65785d71d6b1bed9968f66b94a9233038
nETH Capital Pool: 0x1c1311c5C4E78ce9b1682CB3B2cb29b89DC08F63
Fully customised new UI/UX:
As you may have already experienced, we’ve dedicated efforts into a fully customised and new design structure for the Nsure Network platform, from scratch, in comparison to our prior product release on Rinkeby (MVP).
How to obtain Kovan ETH:
In order to get ETH on your Kovan Network Metamask, select “buy” on your Metamask interface, which will redirect you to a faucet.
We hope you enjoy this latest release and would encourage any participation during Alpha, welcoming suggestions, improvement proposals or any kind of incongruences/bugs one may come across with, if any.
If you would like to read more about out mission, vision and values:
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Official Twitter: https://twitter.com/Nsure_network
Nsure 中文群: https://t.me/NsureCN
For private inquiries or collaborations, please DM any of our admins or contact contact@Nsure.network (http://email@example.com/)