Day By Day, the Australian based company that is revolutionizing the insurance industry through Web3, will launch its underwriting module to testnet. This will show users how to invest in liquidity pools that will be responsible for supporting the risks of NFT policies minted and provide income to investors. In this article we offer you an introduction so that you can find out all the details.
Launch of the Underwriting module
Day By Day is revolutionizing the insurance industry thanks to Web3 technology, allowing users to obtain flexible and tailored insurance. The company continues to advance on its roadmap, with the launches of the different phases that make up its platform. Having launched on Testnet its module to mint “NFT policies”, which allow users to become true creators of policies and obtain passive income when someone contracts coverage without taking risks, now it is the turn to move forward with the next stage to make way for liquidity pools that will provide support coverage for accident events.
The liquidity pools that are subscribed through the underwriting module will make it possible to provide support to the different minted NFT policies, giving way to a new era where users are an active part of the different procedures involved in insurance. In this way, when an accident event occurs in a certain policy, these pools will be in charge of providing the necessary liquidity to respond to the risk.
This is how an efficient framework is established so that people can secure their assets, with peace of mind and the necessary guarantees thanks to blockchain. This technology provides total transparency so that the processes are carried out in a guaranteed manner and always with support. Thanks to powerful smart contracts, Day By Day ensures that underwritten policies are always backed 1-to-1 through underwriting, so they can provide the exact coverage every time.
Operation of the underwriting module and launch of the first liquidity pool
Day By Day has initially chosen the Algorand network, due to its powerful characteristics, to launch its underwriting module on Testnet; and has entered into a close partnership with Algomint to operate through the goUSD asset. This decision allows the Web3 insurance platform to have all the necessary security guarantees for the execution of the underwriting service. On the other hand, Algomint provides an intuitive interface so that users can quickly and easily obtain the goUSD asset without complications.
The underwriting module has been designed to form common subscription funds, where users can grant liquidity to them. In this way, the necessary support for the policies is formed through the different pools, being an innovative and disruptive use case for Web3 technology. In turn, users who subscribe to the different liquidity pools will receive a percentage of the insurance benefits, resulting in passive income for them.
What will the process be like to provide liquidity to the first pools?
As soon as the underwriting module is launched on Testnet, users will be able to start providing liquidity to the first pools. Consequently, it has been decided to start trading with the goUSD asset (due to its characteristics); the first step is to go to the Algomint platform and make a swap (exchange) of USDC for goUSD, through Pera Wallet. At this point, you will already be able to enter the Day By Day underwriting module, connect your wallet and start subscribing to the different liquidity pools.
After obtaining your goUSD you will be able to enter the underwriting module, once it is launched; and you will find an intuitive interface that the Day By Day team is adjusting in detail, where you can indicate the desired amount to grant liquidity to the different available pools. In this way, you will be becoming an insurance investor 3.0 and you will be able to claim rewards at the exact moment. In turn, the team has developed an innovative LP token called “DBD LP”, which has unique characteristics to visualize your investment graphically.
About the “DBD LP” asset and liquidity guarantees in the pools
In its desire to create intuitive procedures and interfaces for users so that they can enjoy a pleasant experience, Day By Day has developed the «DBD LP» asset, which you can see after subscribing to a specific liquidity pool. Through it, you will be able to see in real time all the metrics of your investment in a graphic way and will be responsible for generating income for you. This asset combines the best of NFT and LP tokens to generate a better user experience.
In turn, this «DBD LP» will make up your position within the liquidity pool. In order to provide the necessary security to the insurance platform and guarantee that the policies are never left without coverage, users cannot withdraw their liquidity once the subscription is made, but they can sell their position to other people by transferring the «DBD LP». In this way, support for minted NFT policies is guaranteed at all times and a form of trading is offered to investors.
On the other hand, Day By Day takes security within the platform very seriously, which is why it has developed a mechanism to guarantee that there are funds available to support the policies, even in the face of a vulnerability by malicious actors. This is how a percentage of the subscriptions made through the underwriting module is allocated to a specific wallet, which protects the funds in the event of a possible hack.
We hope that this introduction has helped you to understand even more the procedures and everything that is coming in Day By Day. When the underwriting Testnet launch is underway, we will provide you with more details about it.
We also remind you that a 20% discount is available in the minting of NFT policies, burning 10% of DBD tokens. Don’t miss it!
About Day By Day
Day By Day is decentralizing and democratizing the global insurance industry. Using emerging technologies, the first insurtech platform of its kind, enables a new era of insurance entrepreneurs to influence investment, while providing on-demand and hyper-personalized insurance products for clients.
Insurance entrepreneurs can mint insurance policies (NFTs) that generate passive income and/or invest in underwriting pools (DeFi) to earn a return on investment.
The InsureFi industry will provide next generation insurance that is private, transparent and accurate. Built on blockchain and using AI, Day By Day removes current insurance processes and administrative constraints to deliver value as well as security to customers.
For more information, visit: https://daybyday.io/
Aviso de responsabilidad:
Este artículo no contiene consejos financieros, ni recomendaciones de inversión de ningún tipo. La información brindada se ofrece sólo con fines educativos y didácticos en cuanto a tecnología Web3 y análisis sobre sus casos de uso.
Las inversiones con criptomonedas, NFTs, tokens u otros activos digitales conllevan riesgos y no se encuentran regulados, por lo que los lectores deben realizar su propia investigación antes de tomar cualquier tipo de decisión bajo su entera responsabilidad, así como adaptarse y observar las diferentes regulaciones legales según su país de residencia.