Yearn.Finance to Launch Tokenized Insurance :

Earlier today it was announced that Yearn.Finance intends to launch, a prototype for a new kind of tokenized insurance.

By · Aug 18, 2020 . 6min read

Earlier today, Yearn.Finance announced its plans to release, a prototype for a new kind of tokenized insurance. In the coming weeks, the new insurance prototype will be in the market. Rogue programmer Andre Cronje developed Yearn.Finance. After its launch in January, the yEarn Finance platform has taken the Ethereum DeFi sector by storm. However, it outperformed popular protocols like Compound and Synthetix. Investors have started showing interest in yEarn Finance recently. It is famous for its trading mechanism, return rate, and other incentives.

The platform offers its users the benefits of “yield farming” by assembling different DeFi components in one place. yEarn Finance precisely makes it easier for investors by granting them various tokens (DAI, USDC, USDT, WBTC) to practice yield farming. Besides, the platform enables users to gain profits when depositing funds. Thus, it grants earnings in the form of y-token. Therefore, putting it precisely, if an investor deposits DAI, they can get yDAI.

Exploring Yearn.Finance’s Insurance Prototype

There are three components to this decentralized mechanism of new insurance, namely, Insurer Vaults, Insured Vaults, and Claim Governance.

Insurer Vaults are (LPs) liquidity providers providing insurance. The first vault will be yiUSDC. It offers USDC and earns initiation and weekly fees paid by insurees. However, it will be responsible for claim management. Insured Vaults hold the tokenized asset being insured. Taking USDT as an example, if you wish to insure USDT, you provide USDT to the vault, generating yiUSDT. Thus, USDT deposits are the sum you have insured.

Claim Governance, provides the insured to develop a claim by staking their yiUSDT. Insurer LPs vote with their yiUSDC. However, this follows the standard voting rules, three day voting period, 33% approval, 25% veto, all of which scale based on the claimed sum. 

The design further provides “passive” payments, similar to debit orders, where the insured does not have to make active monthly payments. Thus, the first Insurer Vault will be USDC, and the first Insured Vault will be yUSD (wrapped yCRV) from yVault.

Many traders are positive about this initiative. Moreover, they took to twitter to express their affirmations. One of the traders tweeted, emphasizing that soon 1 $yfi will be equal to 1 $BTC.

Conclusively, with Yearn. Finance’s,, providing a new type of insurance to its users yEarn governance proceeds to be one of the most active in the DeFi ecosystem to date. Nonetheless, Andre Cronje intends to make the safest DeFi protocol available and support users with its new insurance ecosystem.

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