6.1 Core Components
Last updated
Last updated
The InsuranceDAO.World architecture is designed to facilitate decentralized, automated insurance coverage for a wide array of assets including DeFi protocols, NFTs, and real-world assets (RWAs). The platform relies on several core components that ensure smooth operation, transparency, and security:
Verified Nodes are the backbone of InsuranceDAO.World, offering specialized coverage for different asset classes and risks. These nodes provide the infrastructure for risk pooling and dynamic insurance coverage. They are responsible for calculating premiums, managing insurance pools, and verifying claims.
Smart contracts are used to automate all processes within InsuranceDAO.World. These contracts manage:
• Premium collection
• Stake management in the insurance pools
• Claims processing and payouts
By using smart contracts, the platform ensures transparency, immutability, and the absence of intermediaries in the insurance process.
Decentralized oracles play a crucial role in ensuring that real-time data is fed into the smart contracts. Oracles track on-chain and off-chain metrics, such as:
• Market volatility
• Stablecoin price fluctuations
• Smart contract exploits
Oracles ensure that InsuranceDAO.World can react to real-world events, adjust premiums, and verify claims based on actual data, providing a high level of security and trustlessness.
Zorro NFTs serve as the identity and access mechanism for the platform. These non-fungible tokens (NFTs) grant users access to insurance pools, governance voting, and rewards. They are tied to user accounts and allow holders to participate in the decentralized insurance ecosystem by acting as insurers (Angels), earning premiums, and engaging in DAO governance.
• Arrow (ARR) tokens serve as the governance token for the platform, allowing holders to participate in DAO voting, influencing platform upgrades, and earning staking rewards.
• arrUSD is the stablecoin used for premium payments and claims disbursements, ensuring stable value flows within the ecosystem.
Insurance pools are where funds are staked by Zorro NFT holders (Angels) to back Verified Nodes. These pools manage risk across different assets and types of coverage, ensuring that the system has sufficient liquidity to handle potential claims. Insurance pools are governed by DAO decisions and can be customized to focus on specific risks or asset classes.
For more detailed information about Arrow (ARR) and arrUSD Tokens, including their utility, tokenomics, and distribution model, check out this section on in InsuranceDAO.World.
