VIP-9: Proposal to integrate Oddin insurance in Voltage

Summary DeFi is risky, and it’s time for Fuse users to have peace of mind knowing that their funds are secured and insured. Oddin offers a cover for smart contract hacks. Any Voltage users will have the option to purchase a cover against hacks for all or part of the funds locked in the protocol. You can read more about Oddin here: https://oddin.ai 1

Motivation Giving the Voltage ecosystem the option to buy insurance against hacks is extremely important for the future growth of the ecosystem. Oddin’s security layer will make the whole fuse ecosystem a much safer place for everyone and allow the insurance layer to offer much lower cover costs. Oddin integration will move the Fuse Network one step closer to mainstream adoption.

The Insurance pool is used to hold the funds to compensate users in case of a hack in the Voltage ecosystem. All the assets in the Insurance pool receive APY that is paid from two sources, the insurance premiums and investments in tokens such as ETH.

Investments in ETH will be made only with funds not actively covering anything. Assets that do actively cover will be held in FUSD only, to make sure that if ablack swan event happens, Oddin is able to pay 100% of the claims.

To sum up what the Voltage ecosystem gets:

A security solution against malicious actors

An insurance offering to the ecosystem

APY on the funds in the insurance pool

Put a cap on the amount of refund the DAO needs to pay in case of a hack

Proposal Voltage will create the initial insurance pool of $100K that will be locked and used in case of a hack to compensate all the victims that were insured by it. Then anyone from the community can add fuds to this pool and earn the insurance fees. That way enables more trust in the network.

Oddin insurance offers by far the lowest rates among all the insurers. This is possible only because the Oddin security platform is monitoring all the activity on the network.

Proposed Insurance rates:

DEX LP deposits insurance: 2%

Lending deposits insurance: 2% - 3.5%

Staking insurance: 2%

The polling process begins now and will end in 48 hours.

Voting "yes" on this proposal means Voltage will integrate Oddin security, approve an insurance pool of $100k for coverage (out of the Voltage treasury), and pay the Oddin team a grant of $50k for operating Oddin security for 2 years.