When searching for ideas for this hackathon, I found the app called "Flyt". The idea was to offer flight insurance to travellers based on a smart contract using oracles to call a flights status API. If the API returned that the insured flight had been canceled or delayed, then the smart contract would automatically compensate the traveller. I really liked this idea of making fully automated insurances and thought about making a similar app but for Package Shipping Insurance using a Package tracking API such as TrackingMore.com to track delivery. I started working on that when I thought of another insurance idea : A life insurance using Legacy.com's obituary API to compensate families in case of death. I went on and on with new ideas of insurances in multiple domains. I couldn't decide which one to implement for this hackathon, so I thought why not build them all and have them available on a marketplace! Æsurance was born.
Æsurance is an insurance marketplace where you can purchase many different insurances. So far I created 3 insurances in 3 different smart contract, one for packages based on TrackingMore's API, one for flights based on FlightStats's API and one for life insurance based on Legacy.com's API. Each insurance has a pre-determined compensation based on the user's premium. For instance the shipping insurance has a compensation of 1,000% of premium. Click to purchase it. You can input the tracking number of your package and the premium you want to pay. Let's say 0.12 AE. You can see that you will receive 1.20 AE if your package gets lost. Indeed the smart contract of this insurance uses Æternity oracles to access the TrackingMore API and trigger the 1,000% compensation if the package gets lost. Clicking purchase will open Superhero and ask you to pay the premium. That's all, your package is now insured and you will automatically receive 1.20 AE if your package gets lost!
You can also purchase a life insurance at 50,000% of premium and a flight insurance at 700% of premium. Now, notice that each insurance has a "funded" status with an amount of AE available in the smart contrat. For example, the package insurance smart contract currently has 4.20 AE meaning you can only purchase an insurance up to 0.42 AE or the contract won't have enough money to pay for compensations. Notice the flight insurance no longer has any available fund and therefore cannot be purchased.
Now you may ask: How are contracts funded? Well, for that I implemented automated liquidity pools. Open the menu and go to "Provide Liquidity".
Here you can see all insurances again, but this time with Annual Percentage Yields or APY. Indeed, you can provide liquidity to an insurance pool, and in exchange you will receive yield revenues based on the profitability of that insurance. Currently the package shipping insurance has a 6% APY. Click Provide Liquidity on that insurance and enter the amount of funds you want to provide. Let's enter 1 AE and click send. Superhero opens to confirm the transaction.
That's it, you will now receive yield revenues to your wallet. Notice however that Yield percentages are variable, based on the performance and profitability of the chosen insurance pool, and that your funds may be at risk if the insurance is not profitable.
Oh and one more thing, I'm currently working on adding the capability for anyone to create and add a new insurance smart contract to the marketplace. I've created a standard interface for an insurance smart contract with automated liquidity pool. Anyone with an insurance idea and a HTTP API will soon be able to submit it to the marketplace.
As you can see, Æsurance has a lot of potential. There are still a lot of feature to be developed before it can go into production, such as automatising compensation percentage based on the insurance performance, and implementing a lock mechanism of pool funds when an insurance is purchased with a release back into the pool when the insurance's deadline is met. There is still a lot of work but with your help, Æsurance could become the next DeFi unicorn.
Æsurance is live on the Æternity testnet on aesurance.org