How can insurance be used as a TVL growth tool?

Transcript

atomica started probably five or six years ago uh our founder started if uh if flight dealer Insurance yeah five or six years ago and we spent uh yeah and uh we already spent three or four years uh for Atomic development in STM and now we and finally we launched Atomic eight or nine months ago on uh Istanbul defon so it's like a newborn baby now and uh what is atomica you can think about atomica as a uh Unis but for wee risk and insurance and we can also

bring uh some uh real risks like crop insurance from real life uh maybe anyone is buying insurance from Nexus Mutual insur uh how is your experience guys I mean if you're familiar with Nexus Mutual or insurace uh uh we identified uh now if you're farming somewhere if you're providing liquidity to Some Farms like Unis swap Sushi who else it can be a uh now if you farming on let's say the casing uh to buy insurance you should go to ethereum and buy insurance from Nexus Mutual it's not uh Define native way uh

and to uh and finally we created a embeding fidgets SDK and apy and by using C protocol you can embed Insurance Solutions directly to your application Mobile Wallet uh metamask snap or you can embed our insurance into uh mobile applications and and uh unlike Nexus we created Perpetual insurance uh for example if you buying insurance for a Lambo it cost let's say €100,000 and you must pay you must uh prepay uh 10,000 uh EUR up front for one year insurance we created Perpetual

Insurance uh if you com in again to Nexus to insure it you must buy uh at least uh two weeks insurance or one month's insurance but uh in defi we have like uh uh so today apy can be 300% tomorrow it can be 10% you never know uh but you must pay for insurance up front for two weeks let's say uh it's sometimes it's not the case and we created Perpetual insurance and it works like mobile data plan so if uh now in pra I can pay let's say for 6gb for cactus or two another guys if tomorrow I I will fly to Dubai I

can p my data plan and uh I will stop paying and they created roughly the same for insurance if now you're farming uh and get a nice juicy APR from uh let's say sam z k Sy Farm you can buy insurance and pay for a couple days and uh if tomorrow a APR will be will drop to 10% you can p your insurance and another thing we created transfer insurance it's can be quite interesting if you're building a defi protocol decentralized application you can buy insurance for funds for your users for community and you can send

this insurance as nft to any any guy to basically you can send uh insurance for your fund manager and in this case fund manager will be protected against your protocol RIS uh okay what if I will give you a choice between uh unprotected fild 50% it's red pillow and protected build 40% so which one will you choose red or blue okay it's too complicated uh so we

discuss it uh with a few funds and uh fund manager and uh uh market makers always looking for protected deal or risk adjusted deild uh so uh as a fund manager uh I will calculate so I I will take a row AP and uh and I will calculate insurance cost or hedge cost and uh and finally I can compare uh risk adjusted APR is uh is it interesting for me oh not interesting uh so some funds interested to get a 20% IPR 25% IPR and I'm talking about conservative

institutional players and uh let me guide you through some use cases so uh it's it's standard use case about arbitrum ecosystem so uh for example arbitro man as uh a grant top 10 protocols or top 20 protocols who who brings uh the biggest to ecosystem uh will receive some amount of airb tokens and uh after this announcement or Dow post uh Dow and protocols start looking for institutional liquidity uh so guys coming to some institutional players

funds market market makers and uh trying to find the liquidity for for this period of uh of TV so but uh fund managers and uh institutional players are asking about insurance so uh if you as a protocol can provide insurance for a fund manager or Market maker it means you can get a TV and uh maybe nice Point here some funds and fund managers agree to uh hch only

20 30% of position because uh many guys using uh some uh anti fraud systems that uh we free uh real time anti frud systems and uh guys can protect position again hacks and bucks and uh use case number two I can say it's uh ARA Finance uh some so team of developers spent uh 900,000 bucks for Audits and Security Services uh but uh actually guys started uh looking for liquidity for tvl and identified uh so previously team spent a

ton of money for Audits and Security Services and uh uh some funds agreed to provide 20 million liquidity uh but these guys again Ask it for insurance and uh AA Finance tried to get insurance from Nexus inur race but uh these guys are not agreed to provide Insurance because it's brand new protocol and uh it's not battle tested so uh and finally fund manager decided to allocation uh up to 1 million it's you can see the difference between 20 million and 1 million TV if 20 million insurance will be

available after start uh guys will reach a height just after stting uh and how you can uh increase your T if you're talking with institutional users like funds again uh market makers you can buy a short-term Insurance you can think about short-term insurance as a like marketing expense uh for example I briefly calculated uh uh let's say for half million for one week half million uh Insurance May cost

just uh 520 bucks it means uh if protocol Builder you can buy in nft and send it to your fund manager to your fund manager multi it means as a fund manager I will be protected against uh protocol hacks uh any economic attacks and uh losses so and I can give you a try so I can allocate some money for example half million and if I like your protocol later I can pay for insurance by [Music] myself and use case number three we discuss it uh this a few Bridge aggregator aggregators uh like Lei and

then other guys basically 80 90% of all Bridge transactions can be insured uh because usually the average transaction is below 10,000 bucks and uh we have like uh short R time it's about about 5 10 minutes uh and we can protect as I said 80% of transaction by by a small Capital only by few hundred bucks and uh finally Bridge aggregator can advertise all users is protected up to 10,000 bucks uh okay let's play these numbers so for

example uh transaction volume uh was about 2 and2 million uh and 30-day transactions was about 300,000 and we got average transaction size it just 1,000 and uh protocol fees was about 500 6 yeah 5,000 uh 750 and we can we can calculate what what we can do how how we can increase uh uh user base how we can increase turnover for bridge aggregator uh basically what bridge aggregator can do as I said guys can spend only 7% of uh

monthly fees and buy insurance for the users and uh advertise again any transaction up to 10,000 bucks will be in sh and and unlike next as as I said before we have a lot of widgets apys SD case and our insurance can be embedded uh into web free application for example it's a prototype for quick swap uh basically if you providing liquidity you can uh select protect my deposit checkbox or something else and uh basically you can buy insurance directly from uh

decentralized application you should wouldn't go to another blockchain protocol you can buy insurance directly from uh decentralized application basically our insurance can be embedded into transaction life cycle if you depositing R say halfth million you can buy insurance and pay for it demo here and and we also build building a safety model the service if you familiar with

our protocol our has a safety model basically uh our holders can stake uh our tokens uh our stable coin like G or couple in other tokens into our safety model so these guys takes risk but get some rewards and uh what we can do we can create uh this safety model a service and Community can get additional utility for the token it means uh Community can St uh uh utility tokens into risk pools and this risk pools will be connected to the different

uh Community risk markets and uh in return uh these guys can get a high High PR so what we can I will show the results uh we created uh this safety model for landex Dow and after announcement uh token uh increased two times and uh after pools launched token increase again again two times and finally we increased pool capacity and token just jumped again so it's all hand job Market maker uh marketing and uh like insurance safety

model yeah if you need additional uh utility for your token so you can talk to us and be happy to create safety model for you yeah the final results as you can see market cap increased roughly two times and uh uh token price increased uh about 80% and uh again one of the main kpi of landex community was to reduce sales pressure

for the native so governance toen and I think we successfully achiev this kpi and I think that's it from my side