Grant proposal for DefiSafe Protocol

Existing problems:

In terms of investment, profit & loss have become an unavoidable problem. Especially in the field of digital currency, the 24h x 365d transaction and unlimited transaction patterns not only bring huge returns to the purchasers, but also produce huge risks of loss.

Our priority is given to how to provide the investors with better guarantee when designing our products. At present, some decentralized insurance products are available on the market, but some shortcomings still exist. Most products are suitable for minor probability events such as hackers and vulnerabilities. The process of filing claims is more complicated, and voting and other processes are required, so it is likely that the insured users which have incurred losses cannot obtain timely compensation. Compared with minor probability events such as hackers and vulnerabilities, DefiSafe chose a situation that investors are more likely to encounter: losses. Through DefiSafe, users who hold encrypted assets can not only enjoy the appreciation in asset arising from price rise, but also take lower risks of price fall of the encrypted assets.

Solution: DefiSafe Protocol

Defisafe establishes a risk capital pool based on smart contracts, by which the users can enjoy the appreciation arising from price rise, and share the risks of asset shrinkage in case of price fall. It can be understood as a dynamic economic game model, a game between smart contracts and the market. The contracts involve many possibilities. As long as one possibility exists, it is the victory of the contracts, and the users who have incurred losses can make a profit. Defisafe provides a convenient and open cloud-free financial market for digital asset investors. People can efficiently interact based on trusted codes of smart contracts, without relying on third-party guarantee entities.

Defisafe has been deployed on the Ethereum testnet. However, due to the high gas fees on Ethereum, we are looking for a suitable ecosystem to participate in and build together.
This is our official website: defisafe
This is the demo video:https://youtu.be/qd6ULXGE5qc

Questions/Thoughts?

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This is official 1.0 website: http://defisafe.net

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This is our application: DefiSafe Protocol · Issue #1 · SecretFoundation/Grants · GitHub
There is a detailed project introduction.
Hope to hear more suggestions.

The github proposal gives a bit more color about the application.

My ask for the community: Do you think this is a useful product?

How does this product help:

  • TVL on Secret Network
  • Increase TX on network (how many ppl will interact with this app, how many TX a day)?
  • of active users

We would want to see some good arguments and estimates around these metrics

Thank you for your reply. I would like to listen to the suggestions of more people in the community before deciding whether to implement the agreement. Hope to make products that are liked by the community.

Your initial post doesn’t really explain what the product does, I went on Github and basically I see:

“userA holds secret-ETH
userB holds secret-KNC
userC holds secret-BTC
If one of the three users makes a profit, part of the profit will go into the venture capital pool, the loss users will get the secret-DSE compensation, and the funds in the venture capital pool will buy secret-DSE through secretswap.”

My point is why would anybody want to use this when you can just buy an index when you want to reduce your exposure to one particular coin?

Also the token really only has value as long as there’s a bullrun, you will get pummeled by users selling to recoup some losses during corrections/bear markets (literally will go to 0).

So, given that it only really works in a bullrun, why wouldn’t I just buy an index like DPI if anything? I wouldn’t be splitting my profits to buy a token that really is nothing but an “up-only” indicator.

Token is not only not needed, but worse than buying an index and/or buying a holding some coin in your own without pooling with anybody in my opinion.

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Thank you for your feedback. I want to hear more suggestions from people and welcome comments from more community members.