Helmet Insure Project Review: Crypto Insurance Trading Platform

Helmet was developed using Options Trading Logic and it seeks to permit anyone to create an insurance policy - which essentially is a price-fluctuation shield.

By
Abriks
on
January 29, 2021
Category:
Project Insight

What Does Insurance Have to do With Helmet?

The constant worry of all humans in every endeavor is the desire to be assured of one's safety. A helmet, wherever used, protects the wearer's head, as it is generally understood that head injuries are easily fatal. Thus, a helmet is very often a lifesaver when situations turn perilous. In the world of crypto, it is a well-known fact that the value of cryptocurrencies are very volatile, crypto traders and holders typically have to worry about fluctuations in their tokens' prices constantly. The need to protect people from exposure to unfavorable price fluctuations is what gave birth to Helmet.Insure. 

Introduction to Helmet.Insure


Helmet is a decentralized protocol implemented on the Binance Smart Chain (BSC). It was developed using Options Trading Logic, and it seeks to permit anyone to create an insurance policy - which essentially is a price-fluctuation shield. These policies are structured such that any interested party can meet the terms of the policy and acquire a form of hedge against adverse changes in the price of a crypto asset. Helmet.Insure is designed not to be limited to any particular De-Fi platform, supporting cross-platform interoperability. Helmet is particularly useful to holders of crypto assets, who, rather than hold their tokens and risk depreciation of its value, can take an insurance policy that would cover any potential loss due to a downward change in the price during the policy period. 

The Idea Behind Helmet.Insure? 

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In line with the nature of Decentralized Finance, there is also a need to decentralize insurance such that any De-Fi user can provide a price-fluctuation hedge for other users, eliminating the need for centralized institutions. The Helmet protocol was developed to be a De-Fi tool that will enable anyone to accomplish that.


How It Works

In the Helmet ecosystem, the insurance policy creator is called the Policy Supplier while the subscriber to the policy is called the Policy Holder. The policy specifies the percentage of the price of the asset covered. 

Say, for instance, that a particular policy provides 50% coverage at a policy price of 2.25BNB, the premium is 0.1 BNB, the cost of 1 HELMET is 4.5BNB, and a holder ensures 1 HELMET token. If after some time 1 HELMET drops in value to 2BNB and the holder decides to activate the policy, he will get back 1 HELMET at 2.25BNB hence shielding himself from losing 0.25BNB. A detailed guide on how the Helmet insurance policies operate and the types of policies available can be found here.

Key Parts of a Helmet.Insure Policy

Four basic elements define a policy:

Denominated Asset: this is the amount of a crypto asset that the policy supplier pledges as collateral for claims' settlement. 

Underlying Asset: This refers to the crypto asset, paired to the denominated asset, that a policy buyer intends to insure at the payment of a premium.

Policy Price: This refers to the agreed exchange rate of the underlying asset relative to the denominated asset, which will be executed when the holder activates the policy. 

Insurance Period: The duration of time in which the price insurance is active, allowing the holder to claim the policy. 

A description of other helpful terms necessary to get you started in helmet.insure can be found here  


Tokenomics

The governance token of the Helmet.Insure ecosystem is HELMET. It has a total supply of 100 million and is issued by Helmet.Insure. 50 million HELMET tokens will locked in a smart contract for one year, while the remaining 50 million HELMET tokens will be issued within the first year of launch with the following token distribution:

--10% (10 million) for Initial Farm Offering (IFO)

--27.5% (27.5 million) earmarked for the HELMET community

--5% (5 million) is to be reserved for the Developer fund. It will be farmed and locked for one year.

--7.5% (7.5 million) will be used for partner with BSC ecological construction.

Holders of HELMET possess the right to purchase insurance policies with the token, participate in community votes and governance, and receive commission dividends.Currently, HELMET is listed on Pancakeswap, Hotbit Exchange, and MXC Exchange, with more listings to come. An overview of the market performance of the token can be seen in the project's Coinmarketcap page. 

Liquidity Incentives

The Helmet team has partnered with PancakeSwap to create ample liquidity for the Helmet protocol, while simultaneously rewarding users with liquidity incentives. This system allows Helmet to bootstrap both liquidity and users through offering additional Helmet incentives. Currently, users can supply liquidity using Helmet/BNB or Helmet/ LONG bootstrapping both liquidity and policy minting.

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For more information regarding Helmet liquidity mining refer to the following:

Helmet Medium

Liquidity Mining


Closing Thoughts

So far, the project has achieved the following milestones, 

1. Very successful Initial Farm Offering (IFO) on Pancakeswap that exceeded sales targets. 

2. Partnership with a top blockchain security company, Certik Foundation. 

3. Helmet has been integrated into popular crypto wallets such as SafePal, MathWallet, Bitkeep etc

As part of ongoing efforts to grow the project, plans are to list on more exchanges and increase liquidity to all users. 

Further details of upcoming activities and collaborations can be found  here

All in all, Helmet.Insure is a welcome addition to the options available to DeFi users. The potential of the project is immense. 


For more information, take a look at the project's media channels. 

Discord 

Twitter

Telegram

GitHub


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Abriks

Ahamdi Abarikwu is an Electrical Engineer and a lover of anything crypto. He is also an avid writer, proofreader and editor. He loves to play Scrabble in his spare time.