6.2 Workflow & Process Flow
Last updated
Last updated
The workflow of InsuranceDAO.World is designed to be transparent, efficient, and automated. Here’s an overview of how the platform operates:
1. DApp Registration: Developers submit their DApps for insurance coverage by interacting with InsuranceDAO smart contracts.
2. Smart Contract Execution: The smart contract registers the DApp and links it to an appropriate Verified Node, providing the DApp with coverage.
1. Node Purchase: DApp developers or users can purchase Verified Nodes by staking assets (via the Zorro NFTs or ARR tokens) into specific insurance pools.
2. Premiums Calculation: Premium rates are dynamically adjusted based on market conditions and AI-driven risk modeling. The platform uses Lagrange Optimization to ensure a fair balance between premiums and coverage.
1. Event Detection: Oracles monitor real-world data to detect covered events, such as a DeFi exploit, stablecoin depeg, or NFT theft.
2. Claim Submission: When a covered event occurs, affected users can submit claims, which are verified through decentralized oracles.
3. Smart Contract Execution: Once the claim is validated, the smart contract executes an automatic payout from the insurance pool to the claimant’s wallet.
1. DAO Participation: Zorro NFT holders and ARR token holders participate in DAO governance to vote on important issues like premium adjustments, node creation, and platform upgrades.
2. Voting: The community-driven approach ensures that the system remains decentralized, fair, and transparent.
1. Risk Model Adjustment: The platform uses AI-powered risk modeling to continuously adjust premiums and coverage terms based on real-time market data.
2. Lagrange Optimization: Lagrange Optimization ensures that premium rates and coverage balances remain optimal for both buyers and insurers, with adjustments made automatically as market conditions evolve.
The architecture of InsuranceDAO.World is built around key components that work together to create a decentralized, secure, and automated insurance platform. Verified Nodes, smart contracts, oracles, and NFT-based governance ensure that the system remains transparent, adaptable, and scalable. By automating the entire insurance process, the platform offers dynamic coverage for DeFi protocols, NFTs, and real-world assets, while providing users with the ability to participate in insurance pools and DAO governance.
In the next chapter, we will dive deeper into how developers can plug into the platform and integrate their DApps with InsuranceDAO.World.
