Satsurance
  • Welcome
  • Overview
    • Risk in the Bitcoin Ecosystem
    • Risk Management with Satsurance
    • Core Components
  • Platform Participants
  • Satsurance Protocol
  • Risk Infrastructure
    • Sponsor: The Pillars of Risk Management
  • One-Click Insurance: Simple and Fast Protection
  • The Insurance Marketplace
  • Risk Analysis
  • User Journey through Satsurance
    • Detailed User Flow
  • Key Terms
  • FAQ
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FAQ

  1. What is Satsurance, and why does it matter for Bitcoin’s ecosystem? Satsurance is a pioneering decentralized insurance platform built for Bitcoin’s ecosystem. It delivers trustless risk management tools for Bitcoin and BTCFi operations, safeguarding against DeFi-related threats, boosting institutional confidence in Bitcoin, and facilitating decentralized underwriting.

  2. How does Satsurance address risks in Bitcoin’s Layer 2 ecosystem? Satsurance offers risk mitigation for Bitcoin Layer 2 (L2) systems by enabling users to insure assets like staked Bitcoin, bridge protocols, and other BTC DeFi activities. It tackles issues such as smart contract flaws, slashing risks, and bridge breakdowns through tailored insurance pools where users can either supply liquidity or buy coverage.

  3. What are Liquid Insurance Tokens (LITs), and how do they help stakers? LITs are tradable tokens that reflect a staker’s stake in an insurance pool. They allow stakers to access liquidity without leaving the pool and can be utilized in other DeFi platforms, opening up additional earning potential and flexibility.

  4. Why are parametric claims significant in insurance? Parametric claims trigger automatically based on predefined events, like a smart contract breach, eliminating manual oversight. This ensures rapid payouts for users, cuts delays, enhances transparency, and provides swift compensation for frequent risks.

  5. What sets Satsurance apart from conventional insurance systems? Unlike traditional insurance, Satsurance operates as a decentralized, intermediary-free platform powered by smart contracts. It introduces Liquid Insurance Tokens (LITs) as a novel asset class, letting stakers trade their positions for liquidity. With features like cross-chain protection and staking yields, it offers a more adaptable and open insurance model.

  6. What do sponsors do in Satsurance? Sponsors design custom insurance pools by defining coverage scope, risk thresholds, and liquidity goals. They oversee risk management, draw in stakers with attractive APYs, and earn profits from premiums while supporting Bitcoin DeFi underwriting.

  7. How do stakers generate returns on Satsurance? Stakers earn returns by adding liquidity to insurance pools, with APYs tied to the pool’s risk and performance. Yields fluctuate based on claim frequency, premium inflows, and pool activity, aligning rewards with the pool’s overall success.

  8. How does Satsurance handle cross-chain risks in Bitcoin Layer 2? Satsurance enables cross-chain compatibility within Bitcoin’s L2 ecosystem via the SS Chain. This allows coverage for diverse L2 protocols, pooling liquidity to streamline claims and ensure smooth risk management across Bitcoin networks.

  9. What risks does Satsurance protect against? Satsurance insures a variety of risks, such as:

  • Wrapped Bitcoin assets

  • Staking slashing penalties

  • Smart contract weaknesses

  • Bridge vulnerabilities

  • Governance mishaps

  • Stablecoin de-pegging This broad protection shields users’ Bitcoin and DeFi holdings from numerous threats.

  1. How does Satsurance ensure equitable governance-based claims? Governance claims are assessed by a panel of DeFi risk and security specialists. Fairness is maintained through a reward system linked to the precision and clarity of their evaluations, fostering impartial and effective resolutions.

PreviousKey Terms

Last updated 3 months ago