DeFi Insurance and Sushi

I have an idea about DeFi Insurance and Sushi but first I will talk about a few points

Decentralized Insurance

Decentralized insurance is a product that protects a buyer from a potential financial loss caused by a range of possible events in other words it is a tool for hedging risks

traders buy insurance as a part of their broader strategy in order to secure their profits

decentralized insurance typically covers a specified period of time and is paid in the event of a loss that may be caused by price volatility, hacking attacks or
malicious exploits of projects or protocols, and other on-chain and off-chain financial risks.

DeFi Insurance

Since the beginning of crypto there were many numerous hacks, rug pulls, and bugs that have resulted in the loss of billions of dollars

primary purpose of DeFi insurance is provide crypto investors with protection the premium pay for this insurance depending on the risk that covering

The types of risks can buy DeFi insurance for include but not limited
Smart contract risk
Oracle failures
Exchange hacks
Stablecoin de-pegging
Rug pulls
Token theft

There are many products DeFi insurance such as InsurAce Protocol, Nexus Mutual, Opium Insurance, Unslashed Finance

the decentralized nature of DeFi insurance simply means that policy holders buy insurance from a distributed group of coverage providers, as opposed to a centralized company

to purchase an insurance policy, investors have to specify
Risks that investors wanted to cover
Value they want to cover
Length of the coverage

DeFi Insurance and Sushi

The idea is adding DeFi Insurance service to Sushi the point is not to enter the decentralized insurance market
but the idea is to provide DeFi Insurance services for sushi risks and sushi products only
and it is included inside the sushi platform

platforms like Nexus covers many risks related to multiple platforms and protocols, including risks related to sushi
but it does not cover the risks of sushi perfectly or completely and it does not cover all sushi products

If an insurance system is established and is capable of insuring all risks and sushi products, and it is integrated and detailed, meaning that each product or risk is insured separately

Perhaps with a focus on sushi only, and with good marketing, we can offer better prices and better terms than any other insurance platform, because we will be a focus on Sushi only

if we can design an advanced, effective and exclusive decentralized insurance system for Sushi

This will achieve several results

Increasing trust in the sushi platform and also increasing trust in sushi products and in sushi tokens

This will be a new product introduced by Sushi this means new profits and a new market

If an effective decentralized insurance system is built and gradually with the increase in the number of subscribers it becomes cheap and it is private and exclusive to Sushi and covers most of the risks related to Sushi and it is included with the platform and It works with the rest of the products and parts in an integrated and easy way

this means attracting new users to Sushi because it will be more secure than other platforms
It will take time for other platforms to copy this feature , which means that Sushi will have unique advantage for a long time

According to my information until now there is no platform with decentralized insurance system in it cover most risks and products by accurately and effectively way

This DeFi Insurance system may be basis and other products in future will build on it

Idea for discussion

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I like this idea very much. It could add value to the ecosystem and draw in new customers. I suggest policy pricing to be slightly above cost so that profits accrue to SUSHIswap from increasing volume over time.

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hi @your_customer I agree with you and it will be a new product from sushi also

Think any additional offerings that may be potential revenue generators for Sushi, are worth considering.

Are you proposing onboarding one of the existing Decentralized Insurance providers? Could be good to partner.

Or, are you proposing that Sushi create its own Decentralized Insurance offering? This could be a larger lift for core contributors and probably should not take priority over other items on our to-do list.

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Hi @nickjrishwain each choice has advantages and disadvantages
before I say what is my choice Let’s analyze both first

The first onboarding one of the existing Decentralized Insurance providers

advantages

1.It will be easier to implement, less time, fewer problems and less effort because they have experience in this matter

2.Users will trust in product from the beginning because it is in cooperation with a well-known provider in the field of decentralized insurance and therefore it will be guaranteed

disadvantages

1.The product that provider will make for sushi can certainly be made with same features and details and is given to competitors for sushi

2.Sushi will not have complete control on the insurance service provided

3.If the product achieves success, all competitors will easily get the same service with same advantages and details from the same insurance service provider and therefore it will not be an advantage for sushi except for a very short time

4.Any new idea from sushi in this field we want to add it will automatically be added to competitors

the second Sushi create its own Decentralized Insurance offering

advantages

1.Sushi can build a distinctive service that is compatible and integrated,with problems, risks and Sushi products the reason is that it is specially made for sushi to match it perfectly
It will be a unique feature that cannot be copied easily because it was created for sushi only

2.Sushi may turn into the most secure decentralized platform on the market, and this is a huge advantage because it will be the only one that has a decentralized insurance system included in it and completely identical to its risks and products

3.If competitors try to copy it, it will be difficult and will take a very long time to implement

4.Sushi can constantly improve the insurance service and make it constantly better easily because it focuses on sushi products only

5.The service will be fully controlled by the sushi team and directing to achieve the interests of sushi only

6.This product will definitely be the basis for creating other products It may be the beginning of Sushi to entering the field of decentralized insurance or create other completely innovative products

7.More profits because in the end there will be no partner in profits or can offer better prices and terms because there is no partner

8.We can constantly add new ideas without fear of passing it to competitors easily

disadvantages

1.It will take a lot of effort, a lot of time, a lot of problems because it is a new field in which Sushi still has no experience in it

2.It will takes long time for users to start trusting in sushi insurance system because it will be new in this field

3.This is new product and logically it will need strong marketing in beginning and sushi unfortunately does not have strong marketing

even products that already existing with Sushi and some are special and very good, do not achieve expected success because marketing is weak and not optimal
therefore it does not realize the profits and revenues that it is already able to achieve

4.sushi team is talented has excellent experience and has great ideas but number of team members is few

there are not enough financial resources to hire large numbers of additional employees to build a huge team capable of implementing new ideas and be able to compete with other decentralized platforms

and there is no human resources department capable of searching for talents and including them for the team

so the team has limited time and capabilities

and I think that team is not able to develop new products and is not able to copy the advantages found in other decentralization platforms and add it to sushi

the team is with difficulty can continue to develop existing products only

Now after the analysis, everyone will have a different opinion and choice

But I will choose the second Sushi create its own Decentralized Insurance offering

Why I will choose the second ??

because advantages is more and better
and I see that disadvantages in the second we can easily find solutions to it or at least most of them yes It looks big but the solutions are easy

The first choice has fewer advantages and disadvantages in my opinion can’t be solved easily

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I like the thought process, but creating an insurance product takes more than just code and would require capital to be put at risk.

Sushi could consider becoming a light-touch broker or offering a marketplace for other insurance products or protocols to be sold from, while Sushi receives a commission. This best utilizes Sushi’s brand value/goodwill without taking on any risk, deploying any capital, or distracting the team from the core of the Sushi business.

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hi @probatacta your comment includes several points

First point

Sushi could consider becoming a light-touch broker or offering a marketplace for other insurance products or protocols to be sold from, while Sushi receives a commission. This best utilizes Sushi’s brand value/goodwill

It’s very good idea and this is goal of discussion is to find ideas that can be developed sushi I hope community members always provide ideas like that for improvement sushi

Second point

without taking on any risk, deploying any capital, or distracting the team from the core of the Sushi business

Sushi is constantly adding new products and new ideas and entering new markets in the field of crypto

for example shoyunft for NFT Which is certainly a completely different from decentralized finance also Sushi has developed other products that did not exist from the beginning

Everyone does this constantly trying to come up with new products and ideas not only Sushi

All centralized and decentralized exchange platforms are trying to introduce new products and may enter completely new areas of crypto sometime different from finance such as NFT and other fields

Any project or company will not develop and find new ideas after a while will be defeated
by competitors and become just a memory

Risk is something that cannot be avoided

Even if sushi doesn’t try to add any new ideas there will still be risks of being defeated by competitors
there are already decentralized finance platforms that provide good services and offer advantages and products that Sushi does not have so it attracts users to it and gradually obtains larger shares of the market

in general it should to calculate everything accurately to reduce the risk to a minimum

Third point

but creating an insurance product takes more than just code and would require capital to be put at risk

Yes, of course, it is more than just code and also more than just capital
any new idea we want to implement requires deep study and plan and different way of thinking capable to finding innovative solutions to make cost of their implementation as low as possible
and risks are minimal

It’s not about the idea of decentralizing insurance I also presented before other ideas for development not cost any money at all and also not contain any risks

it’s about trying to add new ideas to Sushi that make it competitive and achieve better revenues

This is what I am trying to do to find new ideas and present them to sushi community for discussion in order to finally choose ideas that we can add to sushi that will make it achieve better profits whether these ideas come from me or from discussion with members of sushi community