9.2 arrUSD Token

Important Disclaimer: arrUSD is not the same as a fiat-backed stablecoin like USDC or USDT. Instead, arrUSD is a synthetic dollar, backed by crypto assets and corresponding short futures positions. This means that the risks involved with interacting with arrUSD are inherently different.

Please refer to our extensive Risks section for a detailed explanation of the risks associated with using arrUSD, including market fluctuations, liquidity concerns, and potential counterparty risks.

arrUSD is the stablecoin that underpins the premium payment and claims disbursement systems in InsuranceDAO.World. Unlike traditional fiat-backed stablecoins, arrUSD is a synthetic dollar backed by crypto assets and short futures positions, making it unique and adaptable to the needs of the platform.

Key Features of arrUSD Token:

1. Premium Payments:

• Stable Value: arrUSD is used to pay insurance premiums, providing a stable value that ensures predictable and reliable payments across the platform.

• No Volatility Risk: By using arrUSD, users avoid the risks associated with volatile cryptocurrencies, making arrUSD a stable option for DeFi applications.

2. Claims Disbursement:

• Payouts in arrUSD: Claims are processed and paid out in arrUSD, ensuring that users receive consistent payouts, regardless of market fluctuations.

• Cross-Platform Utility: arrUSD can be used within multiple DeFi protocols and platforms, enhancing its liquidity and usability across the blockchain ecosystem.

3. Stable Value:

• Synthetic Stablecoin: Unlike fiat-pegged stablecoins like USDC or USDT, arrUSD is backed by crypto assets and short futures positions, which may carry inherent risks. Refer to our Risks section for more detailed information.