InsurAce.io staking works slightly differently to what you might be used to from other projects. In fact, by staking INSUR you’re acting as an Underwriter for all Insurance Policies provided by InsurAce.io.
The benefits are that if the protocol gets used as intended, it will generate income from selling premiums, which will be used to cover any payouts for any claims. However, the risk is, that if the payout is greater than the premium pool, part of the staking pool will get liquidated and proceeds from this will go towards paying out the remainder of the claim.
Whilst this is, indeed, a fairly scary risk, by looking at the performance of traditional insurance companies, we can take a small breather, knowing that the majority of them have been around for many years; e.g. Allianz Insurance was started in 1890.
As long as the risk calculations in the protocol are sufficiently smart, and the governance done in a proper manner, your funds should be safe, and you can see returns of up to 45% per year on your staking.
With our InsurAce Staking Rewards Calculator, you can easily estimate your rewards and see how they would change with a relative to the total staked volume of INSUR.
Please keep an eye on our twitter @StakingRewards, as we will soon be releasing a more in depth research article into the InsurAce.io protocol.
Prerequisites
To begin your INSUR staking journey, you will firstly need to buy some INSUR tokens. Currently, INSUR is available on Huobi, UniSwap and PancakeSwap. Once you have purchased your tokens, you will need to ensure they are sitting either on your MetaMask wallet, or another WalletConnect supported wallet.
How to Stake INSUR
Step 1
Start by going to https://app.insurace.io/Staking/StakingPools
On the top right corner, you can choose between Ethereum or BSC.
In the same corner, you can click on Connect Wallet, and follow the usual procedure for connecting your wallet to a dApp.
Step 2
Once your wallet is connected and loaded with INSUR, you are ready to start staking. On the page you went to above, scroll down, and at the bottom you should see a selection of Underwriting Mining Pools.
Select the INSUR pool
Step 3
Once selected, you should see the following window. This shows your current Staked Amount, and any Withdrawals you initiated.
To add more tokens to the Staking, click on the stake button on the bottom left.
Step 4
On the next screen, enter your desired staking amount, noting that there is a minimum of 100 INSUR to be staked. You then have to tick that you understand the risk involved in staking.
Unlock your INSUR and confirm in your wallet by pressing Approve and then all that’s left is to press Confirm in the InsurAce dApp and then confirm the transaction in your wallet.
Step 5
Congratulations, as soon as you hear that MetaMask trade confirmation, you will successfully be staking INSUR tokens.
At any time, you can revisit the InsurAce platform, and track your progress. Unstaking and Claiming Rewards can be done in a similar manner to staking after you select the desired option in the window below.
Please remember, that there is a 15 day lock up period after you decide to unstake, to lower the liquidity risk of the protocol.
Conclusion
Staking INSUR could not be any easier. The process is pretty straight forward, and the InsurAce website walks you through all the steps with ease.
Whilst there is a higher risk involved in staking INSUR when compared to other assets, the current reward rate partly justifies it, and is expected to stay constant for the foreseeable future, and if enough users decide to insure their holdings on InsurAce, the risk should be minimized.
I recommend you stake your INSUR on BSC rather than ETH, due to the reduced fees, and (at the time of this writing) the rewards rate on BSC is a touch higher.