Detailed User Flow

The Satsurance platform offers a streamlined, decentralized system where Sponsors, Stakers, and Proposers can interact with insurance products and generate profits through underwriting and investments. Each role follows a unique process tailored for adaptability, safety, and financial gain. Here’s a clear overview of how each participant engages with the platform.

Sponsor’s Process:

Sponsors, often institutional investors, take on the role of primary insurers by establishing insurance pools and drawing in liquidity.

• Pool Setup: Sponsors design pools targeting specific risks in the DeFi space, setting details like coverage limits, accepted digital assets (e.g., Bitcoin, ETH, stablecoins), and the risks covered. These pools vary from low-risk options for minor issues to high-risk ones for volatile DeFi activities.

• Attracting Funds: Sponsors encourage Stakers to add liquidity by offering appealing annual percentage yields (APYs). For example, low-risk pools might provide a steady x% APY, while riskier pools offer a higher y% APY to match the increased chance of claims. APYs adjust dynamically based on pool performance and claim frequency.

• Pool Activation: Once enough liquidity is secured, the pool goes live on the Insurance Marketplace. Proposers can then buy coverage, and the pool begins underwriting risks, supporting Stakers with liquidity and offering Proposers protection options.

Staker’s Process:

Stakers supply liquidity to insurance pools, taking on risks in return for profits.

• Selecting a Pool: Stakers link their wallets to Satsurance and explore the Insurance Marketplace to pick a pool based on risk and reward preferences. Pools are grouped by risk tiers:

  • AAA Pools (low-risk, lower returns)

  • BBB Pools (medium-risk, moderate returns)

  • CCC Pools (high-risk, higher returns) Stakers choose based on their comfort with risk—opting for a stable x% APY in a low-risk pool or a riskier y% APY with greater claim exposure in a high-risk pool.

• Generating Profits: Stakers earn returns through three channels:

  • Underwriting Revenue: A share of Proposers’ premiums (e.g., x%) goes to Stakers, with steadier returns in low-risk pools and more fluctuation in high-risk ones.

  • Liquid Insurance Tokens (LITs): Stakers receive tradable LITs representing their pool stake, which can be sold on secondary markets or used in DeFi protocols for added earning potential.

  • Investment Returns: Some pool funds are invested in low-risk, yield-generating strategies to boost overall returns.

• Adjustable Returns: APYs shift based on claim activity—fewer claims mean stable returns (e.g., x%), while more claims might lower yields (e.g., y%) to maintain pool sustainability.

Proposer’s Process:

Proposers, or coverage buyers, purchase insurance to shield their digital assets from risks like protocol hacks or smart contract failures in DeFi.

• Reviewing Options: Proposers explore the Insurance Marketplace, evaluating pools by risk level and terms to find coverage that suits them. They might choose a low-risk pool with an x% premium or a high-risk pool with a y% premium based on their needs.

• Buying Coverage: Proposers pay a premium determined by the insured asset value, pool risk, and past claim trends. For example, insuring a large DeFi stake in a high-risk pool might cost y%, while a low-risk pool charges x%.

• Discounts for Stakers: Proposers who also stake in the same pool may get a premium discount (e.g., z%), encouraging broader engagement with Satsurance.

Earning Returns:

Stakers enjoy a dual-profit system combining underwriting and investment income.

• Underwriting Revenue: Stakers receive a portion of premiums (e.g., x%), with yields rising when claims are low and dipping slightly when claims increase to cover payouts.

• Investment Revenue: A segment of staked funds and premiums feeds into an Investment Pool managed by an Investment DAO. This DAO spreads investments across assets for extra returns—say, allocating y% of funds to generate yield—while dynamically adjusting to optimize profits and maintain liquidity for claims.

Satsurance delivers a user-friendly, effective experience for Sponsors, Stakers, and Proposers. Sponsors build the pools, Stakers fund them and earn profits, and Proposers gain customizable asset protection. With a clear claims process, adaptable yields, and tradable Liquid Insurance Tokens (LITs) for added flexibility, the platform balances security, versatility, and profitability. Satsurance is redefining decentralized insurance for the Bitcoin and DeFi landscapes.