Overview
Insurance Mechanism
Guardian AI Protocol is a decentralized insurance platform and ecosystem designed to protect users from scams like rug pulls, honeypots, exit scams, farms and a lot more in DeFi. It combines on-chain monitoring, risk assessment, and community governance to provide coverage and payouts. The ecosystem will provide users with insurance across multiple DeFi verticals including third party tokens (memes and utilties), wallet insurance, Kol insurance and lending plaforms. Unlike traditional insurance models, Guardian Ai operates on-chain, allowing users to purchase coverage seamlessly,
Below are quick examples of our insurance with our native token (Insure with $GUARD) and our insurance direct with ETH/USDT (Insure with ETH/USDT). Please go to 'insurance ecosystem for more thorough examples and information.
Purchase of Guardian AI Tokens ($GUARD): Users begin by purchasing $GUARD tokens, which will serve as the collateral (by simply holding) for their insurance coverage. For example, if a user purchases $1000 worth of $GUARD tokens, they are eligible to insure up to $1000 in third-party tokens listed on our Dapp.
Selection of Third-Party Tokens for Coverage: Users can choose from a list of approved and supported third-party tokens on the Guardian AI decentralized application (DApp). These third-party tokens could include popular cryptocurrencies, from utilities to memes, new launches and old.
Insurance Coverage: Once you have insured yourself on a third party token listed on our dapp, you are now protected against a list of possible scams and frauds. If those scams are committed, you can then claim back 100% of your insurance coverage.
Payout for insurance claims: Payouts for claims shall be processed via the insurance fund, which will be made up off taxes and the token reserve (30%) which will be locked on Team Finance with unlocks for payments on a monthly basis.
Example Scenario for Insurance with $GUARD
User: Purchases $1,000 in $GUARD token
User: Insures $1,000 in “$MemeCoin” via Dapp (User keeps his $GUARD tokens and is now insured on said project as long as he holds THE $GUARD token)
Trigger: Devs drain liquidity, rug pull or token dump;; DAO confirms the rug pull.
Payout: User uses his personal automated dashboard in the Dapp to process claim, receives $1000 from the Guardian Ai Insurance fund.
Example Scenario using Insure with ETH/USDT
User: Insures $1,000 in “$MemeCoin” via Dapp (Our automated system will provide a risk score between 1-100 and cost price for each project between 5% to 10% premium. In this example a score of 8 is given and a premium cost of $80 is charged.
Trigger: Devs drain liquidity, rug pull or token dump; DAO confirms the rug pull.
Payout: User uses the dashboard in the Dapp to process claim, receives $1000 from the Guardian Ai Insurance fund.
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