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How iTrust Finance enhances on-chain insurance

iTrust is a first of its kind, Layer 2 yield aggregator for decentralized insurance. Users of decentralized insurance have the opportunity to take risks through DeFi by earning passive returns with their insurance tokens.

The rise in smart contracts has attracted forward thinkers who are keen to drive innovation at every turn. However, with north of $60 billion in the DeFi space, it has attracted investors as well as scammers. with about three-quarters defi hack protocol After the first audit is done, there needs to be more risky alternatives implemented in the protocol.

One of the most exciting ideas to come from the rise in smart contracts is the removal of the middleman from insurance. With Nexus Mutual’s protocol, you can get quotes on swapping stable tokens in case yield tokens fail, along with protection against wallet hacks and protocol failures. There are plans to insure against real-life incidents with Oracle technology but in order to do so, there are a lot of steps that need to be completed.

By staking Nexus Mutual Native Token (NXM), you can get a decent yield by providing liquidity for the insurance that the protocol is selling. However, the decentralized insurance sector comprises only 2% of the total value locked in DeFi. On top of this, the development of a market-leading insurance protocol is limited by the number of participants who are staking their tokens for the protocol. Decentralized insurance protocols are in dire need of more staking liquidity to increase premium carrying capacity and cover insurance events. iTrust is trying to fix this.

iTrust the Vault

Similar to Yearn.Finance, iTrust uses vault-zapping algorithms to scan smart contract protocols and assess the current risk and reward of each protocol. iTrust Finance aims to dynamically transfer your funds to a minimum-risk yield generating protocol.

A major hurdle with the new DeFi protocol is the ease of use. iTrust has created a very simple layout and easy-to-use interface that allows the user to assign funds for staking, have insights on staked and unstaking funds and a whole new window for rewards. Attempting to maintain a robust user interface is paramount to success when creating a new protocol.

iTrust has developed a dynamic investment tool that increases cover supply and exposure for low-risk yield pools. This form of DeFi investing is an effective solution to avoid pools getting hacked or rigged.

The iTrust Finance token is $ITG, and when staking or mined, the rewards will be distributed in the form of ITG tokens.

Powering Nexus

The first partnership for iTrust is naturally Nexus Mutual, the leading decentralized cover provider in the region.

When iTrust launches, users will have the option to stake in Nexus Mutual’s index of risks or in a low-risk and maximum-reward pool. As with the native $ITG token, iTrust will distribute rewards to holders of $NXM and $wNXM, encouraging users to provide liquidity to the Nexus ecosystem.

By implementing new rewards for the already existing Nexus staking protocol, iTrust is increasing the exposure of Nexus and intends to bring more exposure to the entire decentralized insurance market. As the first platform to tackle risk in decentralized insurance, iTrust is worth diving into if you believe in the ethos of decentralizing more aspects of your life.

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Avinash is a blogger, Enterprenuer, marketer and author. He is very good affiliate marketer and Product Reviewer.