Annuities are honestly so dope, just read this: https://github.com/colinsteidtmann/annuity-contracts/blob/main/hackathon_submissions/WhyIBuiltIt.pdf
My actual inspiration came three days ago. I always thought parametric smart contracts like etherisc.com were such a perfect use of this technology. So I browsed the offerings coming from insurance companies until I stumbled upon an unfamiliar word ... annuities! I read a little bit about them and got hooked immediately. Right away I started reading about their flaws and all the "gotchas" in the industry. Things like: trust issues, middleman charges, annuity contracts that change, and non inclusivity. I then thought, this industry, **actually needs,* smart contracts*
What it does
Annuitants pick the fixed income they want and the number of years they want it for. They start receiving it immediately after paying an initial principle.
Insurers deposit collateral, receive a loan in return, and must make a small minimum payment every month or else they lose their loan.
*Note, this is an MVP. There's many types of annuity contracts and (b/c smart contracts) there is a way for insurers to delay their repayments on their loan, and possibly even undercollateralize their loan! (I wrote about this)
How I built it
Challenges we ran into
I haven't studied accounting before, so figuring out the math formulas for annuities took a lot of my time. Additionally, since I just learned about annuities there was a lot of time spent researching and getting acquainted with the industry and vocabulary. To be honest, some of my math may be wrong, but that will just be another learning experience.
Accomplishments that I'm proud of
I went from zero to one
What we learned
Annuities were entirely brand new to me and I actually really enjoyed learning about them. wikipedia.org/wiki/Annuity was honestly such a great read. I'm trying to convince my mom to think about investing in an annuity contract for her retirement. There are also so many "flavors" of annuities. They're not just for retirees, large corporations and wealthy individuals could use them for tax-efficient charitable donations - maximizing their contributions & impact!.
Chai, Mocha, and Waffle were huge learning lessons for me. I never spent the time to read through their docs and use them correctly, until this hackathon.
Using Excel was also a learning experience. I've rarely used it before.
What's next for Annuities
- Finish contracts for 1 type of annuity (MVP) while also building a team
- Create a web app
- Find first customer
- Find a few more customers
- Start adding additional functionality:
- Add more types of annuity contracts
- Let annuitants direct some of their income to charities
- Created a better automated market
- Integrate with SuperFluid for streamed payments
- So many ways to go from here
The Annuity Industry NEEDS DeFI!