Singapore, Singapore, March 28, 2022 (GLOBE NEWSWIRE) — Recently, NodeDAO launched the DeFi 2.0 mechanism with the new features of DAO+insurance. NodeDAO will build a DAO-oriented vault with the vault as its core. Vault is a DeFi 2.0 repository for storing various assets such as LPtoken, consumer assets, and stablecoins. He earns income by investing in agriculture and supporting worthwhile projects. These revenues will be distributed to NEI holders through the governance of the DAO.
The native NodeDAO token is NEI. NEI can only be minted or destroyed by the protocol, and holders have the right to vote on new protocol developments and changes, NED is backed by a basket of assets in the vault, and every 1 NED is backed by 1 USDT, without being hooked. When the price of NEI falls below 1 USDT, the protocol will buy up and destroy NED. Therefore, NEI can circulate in the protocol for a long time at a price above 1 USDT, which has obvious upside potential, but of course, the price of NEI is ultimately determined by supply and demand in the market.
Moreover, in the specific operation of NodeDAO, it holds all the funds raised by the protocol: for example, if a user buys a USDT bond, the vault will collect the full amount of USDT and exchange it for the NEI equivalent. The new NEI will be based on the risk-free value (RFV) of the assets in the vault.
Funds in the vault are governed by protocol, and NEIs can only be minted or destroyed by protocol. When the price of NEI falls below 1 USDT, the protocol will redeem with the funds held in the vault and destroy the NEI. The vault will work with various protocols and, initially, NodeDAO will launch an insurance product. Insurance premiums are one of the sources of vault assets. Going forward, the vault will be funded by more cooperative projects, however, all funds from the vault will only be used to support NEI asset prices.
With the increase in vault revenue, the support price of 1USDT will also rise, contributing to the appreciation of the NEI price.
NodeDAO platform consists of application layer, settlement layer, network pool aggregation protocol, with full functionality. It uses NIE Hub cross-chain solution to solve asset decentralization problem by mapping all assets with stablecoins on BSC network, and the existing solution is composed of O3 Hub cross-chain pool and polynet. These functional components have greatly reduced the manufacturing cost of insurance products, improved the efficiency of insurance, and eliminated the bottleneck of applications.
Double boost for insurance investment thanks to DAO governance
Besides platform customization, NodeDAO also adopts DAO governance to further reduce cost and improve efficiency, including NodeDAO parameter governance (proportion of fees charged, determination of insurance pricing model parameters , etc.), dividends from vault income, the NEI token increment, governance of cooperative projects and project development, etc. The governor can decide the direction of project development and resource investment by voting.
A large part of the cost of insurance involves the assessment and settlement of losses. Traditional centralized insurance suffers from problems such as unclear determination of liability and unclear clause design, and invests heavily in risk control. NodeDAO introduces a three-step evaluation approach. The launch part of the new product begins with an assessment by experts, who are responsible for assessing the risks of the project and the need to produce specific incident reports for the governors of the community to assess the risks in the event of a contractual security issues. This is followed by a community assessment, in which volunteers from the community further assess the assessment based on an advisory board, and participating users are rewarded with INSUR tokens. Lastly, it is continuously updated and will constantly assess and adjust its level of risk based on the data and information collected. Claims assessment will be managed jointly by the Advisory Board and community claims assessors through community surveys and votes. Participating parties are coordinated through DAO governance to further improve efficiency.
In addition, particular attention is paid to taking into account the sustainability of the benefits for policyholders. For subscribers who provide subscription funds, such a model is difficult to sustain if their income is not as satisfactory as the promised income from other DeFi agreements. NodeDAO further improves returns for entrepreneurs and expands the source of funds for a dual engine of insurance and investment through DAO governance.
Company Name: Blockmove Technology Co., Ltd
Address: 16 Sandilands Road, Singapore, 54600, Singapore
Telephone: +65 57886341
E-mail: [email protected]
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