Someone in the YieldShield community took our newly open sourced code and deployed it themselves so anyone can try it out. We have no idea who you are, but thank you 🫶🛡️ Try it here: ipfs.io/ipfs/bafybeidsdzgu3r…. Follow the point system to explore what YieldShield can do, and let us know what you think.

Btw., we started open-sourcing our @yieldshield_ai smart contracts and front-end code: github.com/YieldShield Feel free to take a look.

Very interesting read. Stablecoins will unlock the next wave of adoption for our industry. We now have well-established blockchain protocols, stablecoin protocols, and even investing protocols. What's missing? Insurance. People want reliability to invest safely. And we are here making it happen.

gm to everyone looking forward to investing with insurance 😎

IYKYK 👀

There have been several discussions lately in the space of token fundamentals. This is great, but it does not scale to users and scares them away. Let's build robust systems that protect users, so we can keep onboarding more people to DeFi.

This is unfortunate, and it is good to see the team responding quickly. Even experienced teams can face exploits. This is systemic risk, not individual failure. It is unrealistic to expect any complex system to operate forever without issues, and we want these teams to keep building the products that move the space forward. Systemic risk is something users should be protected against. That is what we do at YieldShield. When users have protection, builders can innovate with confidence, and the entire ecosystem becomes stronger.

We have been working on a decentralized insurance protocol for some time with @yieldshield_ai based on this paper arxiv.org/pdf/2212.10308, and there are reasons why it hasn’t taken off: First, there are tons of legal questions and uncertainties, e.g., insurance broker/license (which is why Aave calls it balance protection, and why Nexus needs to do KYC/KYB). Second, the claim process in almost all existing protocols is super centralized, and/or there is a massive conflict of interest: e.g., a pool underwriter judges the validity of a claim. This ultimately keeps the pool liquid, but there is no reason to approve a claim unless, maybe, for marketing reasons. Finally, UX: insurance isn’t for the DeFi Degens; it’s for everyone else, so it needs to be developed in a way that the user barely notices it. Once you archive this, there is a gigantic opportunity because of the transparency and efficiency that blockchain can provide, along with the composability.

I guess we need to refine the sales pitch of @yieldshield_ai Aave App, but with a fully decentralized claims process (no oracle, no claim assessors) and a highly capital efficient "balance protection" (= insurance).

If only there were a good insurance protocol for something like this: x.com/lookonchain/status/198… 😉 @yieldshield_ai