Etherisc

Etherisc, a pioneer in parametric blockchain insurance, was founded by Christoph Mussenbrock and Stephan Karpischek on July 28, 2016. The project began as a hackathon entry in December 2016, where it won first prize in the Blockchain Startup Contest in Graz. The first version of the whitepaper was released for review on December 16, 2016.

Etherisc's Decentralized Insurance Platform (DIP) token, also known as DIP, is the governance and utility token powering the platform. The token was created during the Etherisc DIP Token Generating Event (TGE) from June 23 to July 25, 2018, with a hardcap of $30 million and a total supply of 1 billion DIP tokens. The TGE price was set at 1 DIP = $0.10 USD.

In 2019, Etherisc released its Generic Insurance Framework (GIF) under a free and open-source license. This framework allows developers to build and deploy their own insurance products on the platform. The GIF Monitor, a visualization tool for the framework, was introduced in September 2021.

Etherisc has received support from notable organizations such as Chainlink, the Ethereum Foundation, and Mercy Corps Ventures. These partnerships have enabled the development of projects like ACRE Africa, which provides microinsurance to farmers in East Africa. The first payouts to farmers were processed in July 2021.

In addition to its agricultural insurance initiatives, Etherisc has also launched a blockchain-based flight delay protection product called FlightDelay. This product autonomously issues policies and executes payouts for travelers experiencing flight delays or cancellations.

Etherisc continues to expand its ecosystem, with ongoing projects and partnerships aimed at increasing the accessibility and reach of its insurance products.

Etherisc (DIP) is a cryptocurrency that operates within a decentralized insurance ecosystem. Here's how it works:

DIP tokens are staked against specific risk bundles on the Etherisc marketplace. These risk bundles provide the necessary capital to collateralize policies, such as USDC depeg protection. The staked DIP tokens activate deposited capital at a ratio of 10:1, meaning 1,000 staked DIP tokens unlock 100 USDT of capital. The more DIP tokens staked, the more policies can be purchased, generating fees.

To stake DIP tokens, users must first connect their wallet to the Etherisc DIP staking app on the Ethereum mainnet. They then select a risk bundle and enter the desired amount of DIP tokens to stake. The user must agree to the terms and conditions and click the "STAKE" button. The staked tokens are locked in a smart contract until the expiration of the chosen risk bundle.

Rewards are prorated for the duration the DIP tokens are staked against a bundle. Initially, staking rewards are set at 12.5% per annum, funded by the Decentralized Insurance Foundation Treasury. Users can claim their rewards once the risk bundle has expired, without unstaking. They can then re-stake their rewards or withdraw them to their wallet.

Etherisc offers gasless staking and restaking, where the platform covers the fees for the initial stake in a risk bundle. This allows users to stake or restake without paying the gas fees themselves. However, the user must create an allowance for the gasless transaction, which incurs a small fee.

The DIP token is the native token of the Etherisc ecosystem. It shares in the success of the ecosystem and is used to earn transaction fees. Token holders who stake their DIP tokens can receive rewards through a small upfront fee deducted from all policies sold. The fee covers platform and product development costs, and a fraction may be used to purchase DIP tokens on the open market to distribute to stakers.

The DIP token is also being explored for governance utility, allowing token holders to collectively decide on the future platform fee and reward model. This ensures a decentralized and non-custodial system where the interests of all actors are aligned.

DIP tokens can be acquired through decentralized exchanges like Uniswap or other platforms. Users can swap Ether (ETH) for DIP tokens using these exchanges.

The Etherisc DIP token has several strengths that contribute to its value and utility within the decentralized insurance ecosystem:

1. Staking and Rewards: DIP token holders can stake their tokens to contribute to the ecosystem and earn rewards. Initially, staking rewards are set at 12.5% APR, which incentivizes early stakers and encourages community participation.

2. Decentralized Governance: The token is designed to have a potential governance utility, allowing token holders to collectively decide on the future platform fee and reward model. This ensures that the ecosystem remains decentralized and non-custodial.

3. Risk Capital and Collateral: Staked DIP tokens provide collateral for risk pools, guaranteeing future performance and service levels. This mechanism ensures that all actors on the platform have "skin in the game" and aligns their interests.

4. Access to Decentralized Insurance Platform: DIP tokens give users access to the Decentralized Insurance Platform, where they can participate in various activities such as providing risk capital, developing risk models, or offering UI/UX services.

5. Liquidity and Trading: The token is listed on several exchanges, including Uniswap, Bancor, and MEXC, which facilitates trading and liquidity.

6. Treasury Support: The Etherisc Treasury initially supports the staking reward ecosystem by releasing DIP tokens to stakers, up to a maximum of 2.5 million DIP tokens. This ensures a robust balance of tokens in the treasury and minimizes value dilution for token holders.

These strengths collectively contribute to the value and utility of the Etherisc DIP token within the decentralized insurance ecosystem.

Etherisc (DIP) is a decentralized insurance platform that operates on the Ethereum blockchain. The financial risks associated with Etherisc (DIP) primarily revolve around the staking and risk management mechanisms within the platform. Here are some key financial risks:

1. Risk of Depegging: Etherisc offers depeg protection, which involves staking USDT to protect against the depegging of USDC. If USDC depegs, the risk pool may not have sufficient capital to cover the losses, potentially leading to financial losses for investors.

2. Risk Pool Management: Risk pools are managed by risk pool keepers who allocate and lock DIP tokens and/or stablecoins. If these risk pools are not managed effectively, investors may face losses due to inadequate collateralization or poor risk assessment.

3. Staking Risks: DIP tokens are staked against specific risk bundles, which provide the risk capital needed to collateralize policies. If the staked DIP tokens are not sufficient to cover claims, investors may not receive their expected rewards, and the platform's stability could be compromised.

4. Regulatory Risks: As a decentralized insurance platform, Etherisc operates in a regulatory environment that is still evolving. Changes in regulations or legal frameworks could impact the platform's operations and profitability, leading to financial risks for investors.

5. Market Volatility: The value of DIP tokens and other cryptocurrencies can be highly volatile, which means that investors may face significant losses if the market moves against them. This volatility can also affect the stability of the risk pools and the overall platform.

6. Liquidity Risks: If there is insufficient liquidity in the market, investors may not be able to easily buy or sell DIP tokens, leading to financial losses or difficulties in managing their investments.

7. Smart Contract Risks: As Etherisc relies on smart contracts, there is a risk of bugs, exploits, or other technical issues that could compromise the integrity of the platform and lead to financial losses.

8. Governance Risks: The governance model of Etherisc, which relies on token holders to make decisions, may lead to conflicts of interest or poor decision-making, potentially affecting the financial stability of the platform.

These financial risks highlight the importance of careful risk assessment and management for investors considering participation in the Etherisc ecosystem.

• Christoph Mussenbrock: Co-founder of Etherisc, a pioneer in parametric blockchain insurance, along with Stephan Karpischek.
• Stephan Karpischek: Co-founder of Etherisc, a pioneer in parametric blockchain insurance, along with Christoph Mussenbrock.