UnoRe: The Birth of Crytocurrency Reinsurance
With the advancement of blockchain technology,
mainstream industries are playing catch up because
blockchain technology has numerous advantages, such as; borderless payment and also providing seamless user experience which is very important to investors. Too good
to be true, but the fact that we are losing grasp of lifelong restrictions
which hinders our dream; cryptocurrency is gaining massive mainstream adoption
and recognition. Asset
protection, which is one of the major concerns for cryptocurrency investors,
hence the demand for crypto-insurance is highly sort after. But a lot of
providers are skceptical about cryptocurrency insurance market despite its
promising potentials due to the enormous risk it portends.
The doubts about the Cryptocurrency
Industry
The
cryptocurrency industry is known to be highly volatile due to the lack of regulation.
By overlooking mainstream insurance firms as intermediaries, cryptocurrencies
allows transactions to be made relatively quick and cheaply. The quickness and ease of payments is of great importance to every business minded individuals.
They also help in decentralization that put individuals and corporate
organizations at risk when in search of risk management ventures. For example, cryptocurrencies
doesn't require middle men to facilitate transactions, thereby reducing
processing fees, which is mostly costly for small business and merchants.
Borderless
transaction can provide a route for start-ups to gain international recognition.
Moreover since transactions using foreign exchange currencies can take a long
while to process, exchange rates between the buyer country’s’ currency and the
seller country’s currency may fluctuate while funds are in process, causing a
loss for one of the parties. Cryptocurrencies prevents against this forex risk
by ensuring a faster transfer of funds. The
downside to all this is that, Cryptocurrency is effectively a bearer asset,
meaning, possessing a bitcoin (BTC) or other crypto coin effectively
establishes ownership, just like cash, and entitles the possessor to the
underlying value. Consequently, when someone’s bitcoins are stolen, it’s
difficult to establish rightful ownership without actual possession of that
bitcoin.
Cryptocurrency hack is a real risk because over the years high profile cryptocurrency theft have gained media attention: Mt.Gox lost $460 million to hackers in 2014, Bitfinex lost 120,000 Btc in 2016. coin-check also lost $530 million belonging to 260,000 customers in 2018. Cryptocurrency theft has seen a tremendous increase in the past few years. It is estimated that almost $1b has been lost to hacks and theft of cryptocurrency exchanges and other trading platforms excluding individual losses.
Insurance and Cryptocurrency
A cumulative of various risks and potential loss of crypto assets have led various investors’ and users to seek out protective ways to secure their assets, and crypto-insurance is being considered from time to time. Providers of crypto insurance can charge annual premiums equal to one and five percent of the covered assets. But despite the highly-publicized risks, big investor says they aren’t aware of any insurer that’s paid a cryptoinsurance claim. This single fact has given birth to crypto insurance firms like Marsh and McLennan, which recently formed a team solely dedicated to servicing blockchain start-ups and Aon, which claims over fifty percent of the crypto insurance market.
In this article, I am going to introduce to you the future of Decentralized insurance in the name of UnoRe (Uno=First, Re=reinsurance). This is The World’s first risk trading Reinsurance platform, highly backed by Polkaster.
Introducing UnoRe
Investopedia defines Reinsurance as the practice whereby insurers transfer portions of
their risk portfolios to other parties by some form of agreement to reduce the
likelihood of paying a large obligation resulting from an insurance claim. The
party that diversifies its insurance portfolio is known as the ceding party. Reinsurance
is also known as Insurance for insurance companies.
UnoRe is the insurance for insurance companies that will take the level of security offered by insurance companies to the highest level and open the possibilities provided by insurance companies. Let me just say, we are not talking about an ordinary project, but a project supported by Polkaster; one of the successful platforms in the cryptospace in recent times and other renowned Vcs. UnoRe platform plans to introduce reinsurance to the current crypto insurance protocols. The platform will allow insurance protocols to reinsure their products transferring part of their risk over to UnoRe.
What does UnoRe Offer
Many insurance companies have proffered central solutions to facilitate and give succour to crypto-investors. Unore is a completely decentralized platform. So you have absolute control. UnoRe platform will allow users to be able to invest in the risk profile. At this point the platform will allow users to invest in DAI and receive returns in UNO tokens or DAI (with higher reward ratios available in UNO tokens). There is an additional reward if they stake their rewarded tokens on the platform.
some features of UnoRe are as follows;
· Providing insurance to insurance provider
· Allowing users to trade risks on the platform
· The UnoRe platform will supply all the required elements to investors to established innovative products , which would be added to the UnoRe reinsurance risk profile
· UnoRe will provide all elements required to the masses to come and build new and innovative products on our platform, which would then be added to the UnoRe reinsurance risk profile
Some Use-cases of UnoRe
· All claims will be paid out in UnoRe tokens which can be held or traded to fiat
· Staking: Multiple staking options will be made available on the platform to drive the token to scarcity with Apys reaching up to 60%.
· Crypto users who wish to purchase reinsurance products through platform will purchase the product by UNO token.
· Uno token will also be used as collateral on the platform
Conclusion
If you are actively
looking to trade risks and security for your crypto assets, usability and
possibilities are important to you, UnoRe is here to offer all these to you in
a completely decentralized environment! It looks like the solution to
minimizing crypto-risks that’s been sort after, with its practical and cosy
interface, front-running and trade collision-resistant infrastructure
and possibilities competing with the standard of mainstream insurance
companies. Moreover, it is supported by Polkaster.
It is worth looking at in my point of view.
Currently, whitelist for presale is currently ongoing for UnoRe here Whitelist. If you want more information about UnoRe, you can check the Whitepaper
Useful Links
Get Whitelisted
Author: AdedejiBAdekunle
This
article is not meant to give commercial or any other kind of advice. It is just
an informative text at all.
Always DYOR