After suffering major losses after systemic failures in Terra Luna, I was determined to find a solution that would assist retail investors like myself from future losses as a result on systemic failures in the crypto ecosystem.

What I've built

This is an insurance application smart contract built on the Polygon and Flow blockchain using Solidity and Cadence. It allows users to insure risks associated with systemic risks like the collapse of a CEX/DEX, market disruptions not associated with the normal trading of assets. Investors stake their funds for a specified duration in order to cover liability and in return earn yield on the premiums paid by users. The application includes various features such as policy selection, stake deposit, rewards calculation, policy management, and claims processing.

Problem Statement

In the rapidly growing crypto ecosystem, there is a need for reliable insurance solutions to protect investors from potential losses due to market volatility and unforeseen circumstances. Traditional insurance systems are often slow, inefficient, and lack transparency. Additionally, existing crypto insurance platforms may have limitations, such as high costs, complex processes, and limited policy options.

Solution

The Insurance Application aims to address the above challenges by providing a decentralized insurance solution. By leveraging the benefits of blockchain technology, the application offers the following advantages:

Transparency: All insurance policies, stake deposits, rewards calculations, and claims processing are recorded on the public Polygon blockchain, providing transparency and auditability to policyholders.
Security: Smart contracts ensure the security of funds and automate policy management, eliminating the need for intermediaries and reducing the risk of fraud.
Efficiency: The application automates policy expiration, rewards calculation, and claims processing using Chainlink, streamlining the insurance lifecycle and reducing administrative overhead.
Flexibility: Users can select from multiple insurance policies with varying levels of coverage, allowing them to choose the one that best suits their needs and risk appetite.
Improved User Experience: The frontend interface provides an intuitive user experience, making it easy for users to interact with the application, manage their policies, and track their rewards and claims.

Architecture

The application consists of two main smart contracts:

Insurance Contract: Handles the insurance policies, including policy selection, expiration, and maximum loss protection percentages. Timebased Staking Contract: Manages the staking of funds for a specific duration and calculates rewards based on the insurance protocol performance. Test Token was deployed as the underlying insured asset for the demo.

How GuardRisk was built

-React

Vercel
Ethers
Chainlink
Solidity
Cadence
Chainlink functions starterkit

DEPLOYED CONTRACTS

Nautilus Chain: --GuardRiskInsurance: https://triton.nautscan.com/tx/0x278d26763f6a97592ccf953bde9d655c1a29a8073e4a70948bf69f02f040531e -- GuardRiskTestToken: https://triton.nautscan.com/tx/0xc8f4318ff6018cef3967a930f0976a55ffb9392951da0b6c49e7cc338024c890
GuardRiskTestToken: 0xBde7A4Dc4Fd28729B668EC6361B8d5E7c82E462c (Test underlying insured asset)
GuardRiskInsurance: 0x5E24aBe3706f7d988713A4568e421223f4591BBc

** Automation: **

Update asset value: https://mumbai.polygonscan.com/tx/0x8e7e50df0a3c0a7c43b818b361f7ff5e082cac26eee03136e8126313f08dc15a
Automate claim based on insured asset value: https://mumbai.polygonscan.com/tx/0x0716d0bf025d769cbf23bfae8c615fef371e16f03d69665172ca23da19d745b7
Data feed
Volatility index used for calculating risk: https://mumbai.polygonscan.com/tx/0xf0fdf2735a56a94105962a55baff575f71876027d292f86093e77a15af3f9855
GuardRiskStaking: 0x2281E49eb686663b9e033670AC103289c20FA033

Functions:

Chainlink Functions for calculation of staking rewards: https://mumbai.polygonscan.com/tx/0xcd05b45d1b7e60e07465b01a67a61719bec49b99e8ea9b033daffd50616a1a76 https://mumbai.polygonscan.com/tx/0x4bf07a39b02ba6095835094ab38550ddc0a9ee5bf0fe2caf5ea4e0dda75a3b75

Automation:

Return stake and rewards on expiry: https://mumbai.polygonscan.com/tx/0x63456176b767dd13d97a271c4a3646987db64063c0d4d2eee8c7e37a434b5063
Flow contracts can be found in ./contracts_cadence folder
Solidity contracts can be found in ./chainlink_functions/contracts folder

Usage

Access the frontend application through a web browser.
Navigate to the Policy Page and select the desired insurance policy.
Proceed to the Staking Page and stake the desired amount for a specified duration.
Monitor the policy details and rewards on the Dashboard.
Make payments on the Payment Page to reactivate an expired policy.
View and track claims on the Claims Page.
Manage policies by upgrading or canceling on the Policy Page.