ISM price insurance
With ISM price insurance, the insured can choose to sell the guaranteed Token at the guaranteed price at any time throughout the term of the policy.
The respective rights of CLAIM and UNCLAIM
The user stakes 1 unit of collateral in the insurance factory to generate two tokens: CLAIM and UNCLAIM. Returning CLAIM and UNCLAIM at the insurance factory will get 1 unit of collateral. The parameters of CLAIM and UNCLAIM include: expiry time, guarantee Token, and guarantee price.
For example: ISM_MINI_2021_12_31_10_USDT_CLAIM, which means that the holder of CLAIM can sell one unit of MINI at the price of 10USDT before December 31, 2021.
CLAIM + UNCLAIM = 1 unit of collateral
CLAIM holders' rights:
Before the expiration date, 1 unit of guaranteed token can be sold at the price of XUSDT through CLAIM. (After it expires, the value of the insured token will turn to zero due to the invalidation of CLAIM)
After January 30, 1 unit of collateral can be gotten back through UNCLAIM.
ISM business module
Market makers hold CLAIM and UNCLAIM tokens and provide liquidity for these two tokens. The main purpose of market makers is to earn market-making income that provides liquidity and subsidy income from mining.
Market makers first need to deposit collateral, such as USDT, to get two insurance tokens, CLAIM and UNCLAIM, and then provide liquidity for CLAIM and UNCLAIM tokens in DEX. Becoming a market maker can earn liquidity fee income and ISM token income.
Insurance providers only hold UNCLAIM token and provide liquidity for them. In other words, insurance providers are mainly underwriting, rather than becoming insurance demanders. An insurance provider can be the project party and provides underwriting for its contract users.
Insurance providers first also need to deposit collateral to get CLAIM and UNCLAIM tokens; then sell the CLAIM tokens it holds (can get a premium) to provide liquidity only for NOCLAIM tokens.
Insurance demanders hold CLAIM tokens for the purpose of protecting the security of the assets in its agreement. The insurance demander is the user who purchases the insurance. It is very simple to purchase the insurance, no KYC required, only needing to purchase the CLAIM tokens of the specific agreement on the DEX.