In the traditional insurance industry, the insurance company will use the clients' funding to invest in other financial products to generate returns for the clients. Similarly, InsurAce.io will also carefully use the free capital secured from the SCR to invest in other DeFi products to gain investment return.
InsurAce.io will build an investment function similar to Yearn Finance to design and implement effective strategies. Customers can either directly invest via the InsurAce.io Investment Portal or earn passive income with the free capital staked via the Insurance Portal. The built-in insurance capabilities will be able to provide protection over the DeFi protocols invested seamlessly. The investment return will complement the insurance customers, which creates a secure and sustainable investment cycle holistically.
Some potential investment plans that InsurAce.io investment will consider are as below: •
Yield farming on audited protocols and find the profitable investment paths;
Stake the funds with lending platforms such as Compound to earn interests;
Stake the funds in DEX such as Uniswap to make the profits of liquidity providers;
Other eligible investment strategies.
A minor portion of the investment yield will be used to cover the transaction/operation cost and other potential expenses incurred. InsurAce.io will reward the residual gains to the customers.