The DeFi sector is booming right now as more and more tokens and lending platforms are being launched. However, the influx of so much money and investment means is also resulting in increasing numbers of fraud and “rugpulls” for investors. Unfortunately, there is no insurance company available to leverage the incredible risk on DeFi investment. SuperSafe aims to change that with its innovative approach to cater for the needs of the DeFi space.
What is SuperSafe?
Supersafe believes that before you embark with your crypto to the moon, be sure that your spaceship is insured. Based on the Binance Smart Chain protocol, the SuperSafe approach is different than conventional insurance companies. Many of these companies in the sector are over-leveraged and they are therefore motivated to avoid paying as many claims as possible. So, insurers offer little for a lot of money. They are also heavily driven by risk-based analytical models. Because of the risk associated in the DeFi/Crypto space, they might never venture this far out of their comfort zone at all in the near future.
SuperSafe aims to offer a set of different insurance packages to investors around the world. Its primary purpose is to save investors and traders from the scams currently populating the growing DeFi sector. While investors do need to continue to be more careful regarding their investments, SuperSafe aims to bring a peace of mind so that they can invest and take appropriate risks without worrying too much about losing their money to scams, etc.
How it Works?
- You need to purchase the native SSF tokens to be eligible to SuperSafe payouts in case of a scam. Once you have gotten your hands on the SSF tokens, you need to place them in your SuperSafe wallet and sign a request. Your insurance plan will then go into effect 5-7 days after you place these SSF tokens in your wallet.
- If your portfolio gets affected by a scam, SuperSafe is expected to reimburse your losses. The amount of payout will be dependent on the plan chosen at the start of the SSF token purchase. Once scammed, you need to send a email regarding the incident that includes the name of the crypto token, affected wallet address, date of the incident, your SSF wallet address and any other necessary information to help the team.
- The SuperSafe team will process your request and initiate the transfer of the SSF tokens according to the plan chosen by you at the very start of the process. The team will place a buy order for the SSF tokens and then wait for it to execute in the free market. No one is forced to sell their SSF tokens but new investors will be looking for more SSF purchases and they will need to purchase it from the open market to start an insurance plan. The SSF tokens themselves, if not added to a wallet can be traded for BNB/BTC/ETH and that is how you can convert your claims into mainstream cryptocurrency.
There are two types of capital pools in place at SuperSafe insurance. The first is an initial capital pool that helps reimburse initial reimbursements. The second is the treasury pool that will become operational once users start to hold their SSF tokens in their wallets and basically insure themselves.