4.2 Types of Verified Nodes: Tailored Coverage for Every Need

InsuranceDAO.World offers a variety of Verified Nodes, each designed to provide coverage for specific risks. These nodes enable developers and users to select the appropriate coverage for their needs, ensuring that their DApps and assets are protected from the widest range of risks.

Here are some examples of the types of Verified Nodes available:

1. Yield Strategy Node

• Coverage Focus: Staking losses, protocol failures, and impermanent loss.

• Use Case: Protects liquidity providers and yield farmers in DeFi protocols from losses due to volatile market conditions or protocol vulnerabilities.

• Target Audience: Users who stake tokens or provide liquidity in decentralized finance and are exposed to high volatility or protocol risks.

2. DEX Liquidity Node

• Coverage Focus: Protects liquidity providers on decentralized exchanges (DEXs) from vulnerabilities, slippage, and market shocks.

• Use Case: Provides protection for liquidity pools on DEXs, covering potential losses due to sudden price changes or smart contract exploits.

• Target Audience: DEX liquidity providers and DeFi participants who want to safeguard their liquidity positions from unforeseen risks.

3. Smart Contract Security Node

• Coverage Focus: Covers losses caused by smart contract exploits, governance failures, or malicious attacks.

• Use Case: This node ensures protection against the vulnerabilities that can arise from smart contract bugs or governance attacks, particularly for high-value DeFi protocols.

• Target Audience: DeFi protocol developers, dApp users, and anyone interacting with smart contracts in the decentralized ecosystem who needs protection from vulnerabilities.

4. Stablecoin Protection Node

• Coverage Focus: Protects users from stablecoin depegging events, where the value of the stablecoin drops below its expected peg (e.g., $1 USD).

• Use Case: Provides coverage in the event that a stablecoin experiences depeg events, offering payouts to users whose assets are affected.

• Target Audience: Investors, traders, and DeFi users who use stablecoins in their portfolios and wish to protect against the risk of market instability.

5. NFT & Digital Asset Node

• Coverage Focus: Protects high-value NFTs and digital assets against hacks, theft, or liquidity crashes.

• Use Case: Offers coverage for the growing NFT market, ensuring that users are protected against the sudden devaluation of rare digital assets or security breaches.

• Target Audience: NFT collectors, digital asset investors, and projects in the NFT space who want to secure their holdings from vulnerabilities in the marketplace.

6. RWA Protection Node

• Coverage Focus: Bridges on-chain and off-chain for tokenized real-world assets (RWAs), such as real estate, commodities, and securities.

• Use Case: Provides coverage for tokenized physical assets, offering protection against risks like market fluctuations, legal issues, and theft.

• Target Audience: Real estate developers, commodity traders, and institutional investors involved in RWA tokenization on the blockchain.

7. Lending Risk Node

• Coverage Focus: Covers borrowers and lenders in the event of liquidation or insolvency within lending protocols.

• Use Case: This node ensures protection for participants in DeFi lending platforms by providing coverage in case of liquidation events or protocol failures.

• Target Audience: Users involved in decentralized lending, both borrowers and lenders, who need protection against liquidation risks or insolvencies.

8. DAO Treasury Protection Node

• Coverage Focus: Protects DAO treasuries from mismanagement, hacking, or governance attacks.

• Use Case: Provides coverage for decentralized autonomous organizations (DAOs) to secure their treasuries and operational funds against mismanagement or malicious attacks.

• Target Audience: DAO members, token holders, and DAO treasury managers who need to ensure the security of their organization’s reserves.