The need for smart contract safety is ever-growing, and Soteria Mutual caters directly to this issue. Soteria Mutual provides a mutual that insures projects and their users from hackers or exploits.
Soteria brings mutual insurance to the Binance Smart Chain (BSC). This fully decentralized protocol will cover losses caused by hacker attacks or smart contract vulnerabilities. The insurance will serve both the users as well as the participating “partner” projects.
Soteria just launched in January of this year, PancakeSwap was the first project that signed up for the service, and many followed quickly. The protocol currently covers about $7,000,000 worth of contacts through all the various partnerships.
The Soteria users, or preferably members, register themselves (0.1 $BNB) on the Soteria dAPP. After which, members can purchase and use the $SOTE platform. Already, 10,585 users have registered for the membership so far.
The whole Soteria ecosystem revolves around the $SOTE token; it is the native governance token and integral to the insurance model.
Users can stake their $SOTE on contracts of partner projects. Staking your tokens shows your faith in that particular project you stake in. Of course, you can stake in multiple contracts if you wish to.
$SOTE is also used to buy insurance for a project you are invested in. The $SOTE token enables individuals to participate in governance and underwriting claim assessments ensuring complete decentralization.
The $SOTE token is not for trading. If you want to trade it, you will have to wrap it and create $wSOTE tokens that can then be traded freely. The Soteria members are the owner of the protocol, making all crucial decisions, whether a claim is to be paid out, governance on contract parameters, and owning (part) of the capital fund, ultimately covering all claims.
This also means that all members will share the protocol’s risk and reward, a co-insurance model.
For those who wish more about Soteria check out the following article:
The partner program enables projects to become partners, enabling (Soteria) users to buy insurance for participating projects.
For a project to become part of the Soteria mutual partner program, they will have to meet specific requirements, one of the largest being an audit report. Also, a capital injection is needed.
A partnership is established after member votes, and community auditors have reviewed the contract.
Projects can apply using THIS link, filling out a Google Form to be reviewed by Soteria. Being a partner in Soteria will bring multiple benefits to your project and its users:
Any value in smart contracts is protected
Get SOTE token reward by risk assessment on your project
An initial fund of $10,000 or more provided by the Soteria team
Extra exposure through the Soteria social media channels
Strong community support
Enables participation for joint BSC events.
Soteria aims to be a more transparent protocol, and they are analyzing how to do that. They also want to provide better information and documentation for their members. The team is beginning by adding more supported wallets and improving mobile compatibility.
Soteria aims to become the primary insurer on the BSC, but the team aims for other blockchains after reaching 60% coverage on the BSC projects. Even a look into real-world assets and insurance is possible in the future.
Another innovation is the possible adjustment of capacity on a “per project” basis to utilize capital better. There will also be a forum to discuss and elaborate plans between the community to better accommodate the protocol’s growth.
The team is also looking into making coverage for sets of (related) protocols and experimenting with NFT coverage. Overall the team is currently working to broaden Soterias use-cases.
The need for smart contract safety is ever-growing. Many people would love to insure their investments, and Soteria Mutual caters directly to this issue. Soteria Mutual provides a mutual that guarantees projects and their users from hackers or exploits. The community (members) are in control of the protocol through honoring claims and accepting new projects. This will be done in a decentralized manner so that it should always be fair.
The members will share in both profits and eventual losses. In short, limited payouts for insurance means you will earn; many insurance payouts could mean you lose. Just like your car insurance, premium adjusts based on current environmental (market) conditions. Only car insurance agencies don’t pay you if they are in profit; Soteria does.
As for projects, it is very lucrative for them to join the Soteria Mutual Partner Program. Users will feel much safer knowing Soteria accepted the project, giving them the ability to buy insurance as a hedge.
The free marketing and the ethos a project builds should be enough for projects to join the Soteria Mutual Partner Program. I imagine the extra bit of peace of mind helps also.
This project is really cool, offering something that many will gladly use to protect their investments or project.
Source : bsc.news
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