INS3.Finance: A Decentralized Cross-chain Insurance Solution Without Intermediaries

What is INS3.Finance

Friends, imagine the various types of insurance we buy in daily life, such as car insurance or health insurance—they’re all designed to provide us with protection in case of unexpected events. In the blockchain world, our digital assets also face various risks, like exchanges being hacked or smart contract vulnerabilities. INS3.Finance (abbreviated as ITFX) is like a “decentralized insurance company” tailor-made for these digital assets.

It’s not operated by any centralized company, but instead leverages blockchain technology to enable collective participation and management. Its goal is to provide trustworthy, borderless, and secure protection for assets in the blockchain industry. What makes INS3.Finance special is that it combines decentralized finance (DeFi), non-fungible tokens (NFTs), oracles, and cross-chain technology to build a brand-new insurance model.

Simply put, when a claim is needed, it doesn’t require manual review like traditional insurance. Instead, an independent “claim oracle” and participants jointly assess the situation. Once preset rules are met, compensation is paid out immediately, greatly improving efficiency and transparency.

Decentralized Finance (DeFi): Refers to financial applications built on blockchain, without traditional banks or financial institutions as intermediaries.
Non-Fungible Tokens (NFTs): Unique digital assets, each NFT is one-of-a-kind and irreplaceable; here, they can represent insurance contracts.
Oracle: A service that transmits real-world off-chain data to the blockchain, enabling smart contracts to execute based on external information.
Cross-chain: The ability for different blockchains to communicate and transfer assets between each other.

Project Vision and Value Proposition

The vision of INS3.Finance is to become the world’s first fully decentralized insurance protocol. Its core value lies in addressing the pain points of insurance in the crypto world: traditional insurance companies often don’t understand or are unwilling to underwrite crypto asset risks, while existing centralized crypto insurance may suffer from opacity and inefficiency.

INS3.Finance aims to provide an insurance solution that is intermediary-free, highly transparent, and enables fast claims through its innovative “DeFi + NFT + Oracle + Cross-chain” model. Its uniqueness lies in the fact that claim decisions are no longer dependent on governance token holder voting, but are instead determined jointly by oracles and users, minimizing human intervention in the system and making the claims process more objective and automated.

Technical Features

The technical core of INS3.Finance lies in its clever integration of multiple blockchain innovations:

• Decentralized Insurance Model: The entire insurance process runs on the blockchain, with no centralized institution in control, ensuring fairness and transparency.
• NFT Insurance Policies: Each insurance contract is minted as an NFT. It’s like buying a unique digital policy—clear, transparent, and tradable in the market, increasing the liquidity and value of the policy.
• Independent Claim Oracle: This is a major highlight of INS3.Finance. It doesn’t rely on manual review, but instead obtains on-chain and off-chain data via oracles, and combines the judgment of users and oracle nodes to decide whether to trigger a claim. Once conditions are met, claims are settled instantly, avoiding long waits and disputes.
• Cross-chain Support: INS3.Finance supports multiple blockchain networks, meaning your digital assets can be protected regardless of which chain they’re on. Currently, it’s deployed on Binance Smart Chain (BSC), OKExChain, and Polygon, among others.
• Parametric Insurance Model: This model presets a series of trigger conditions (parameters). Once these conditions are met, insurance is paid out automatically, reducing the scope for subjective judgment.

Tokenomics

The native token of the INS3.Finance project is ITFX.

• Token Symbol: ITFX
• Total Supply: 10,000,000 ITFX
• Maximum Supply: 10,000,000 ITFX
• Self-reported Circulating Supply: 1,200,000 ITFX, accounting for about 12% of the total supply.
• Issuing Chain: Mainly issued on Binance Smart Chain (BSC).
• Token Utility: While the detailed tokenomics are not fully elaborated in the available materials, typically tokens in such projects are used for:
  • Staking: Participate in insurance underwriting or stake as an oracle node to earn rewards.
  • Governance: Participate in community governance and vote on major project decisions (although claim decisions are automated via oracles, other aspects may still require governance).
  • Payments: May be used to pay insurance premiums or as rewards within the protocol.

Team, Governance, and Funds

Specific information about the core team members of INS3.Finance is not detailed in publicly available sources. In the blockchain space, some projects opt for anonymous teams, which carries certain risks and requires individual assessment.

In terms of governance, INS3.Finance has introduced a “DAO lock-up feature,” indicating the project is moving towards a decentralized autonomous organization (DAO) model, allowing community members to participate in project management and decision-making. However, it’s worth noting that the project emphasizes its claim mechanism is automated via oracles, thereby “abandoning the process of deciding reimbursements through governance token voting and minimizing system governance.” This means that for core claims, the project aims to reduce human intervention and improve efficiency and objectivity.

Regarding the project’s financial status and treasury information, there is currently no direct public information available.

Roadmap

Based on published announcements, we can see some key development milestones for the INS3.Finance project:

• June 9, 2021: Launched on Binance Smart Chain (BSC).
• August 20, 2021: Launched on OKExChain.
• September 2, 2021: Launched on Polygon network, achieving cross-chain deployment.
• November 11, 2021: Released the INS3 V2 roadmap.
• November 29, 2021: Introduced the DAO lock-up feature.

These historical events indicate progress in multi-chain deployment and decentralized governance. Future plans will mainly revolve around the V2 roadmap, but specific details require consulting more detailed official documentation.

Common Risk Reminders

Every blockchain project comes with risks, and INS3.Finance is no exception. Before considering participation, please be sure to understand the following points:

• Technical and Security Risks: Although the project claims to have an audit report (Beosin’s audit of INS3 v1.5), technical risks such as smart contract vulnerabilities and oracle attacks still exist. Blockchain technology itself is constantly evolving, and new security threats may emerge.
• Economic Risks: The cryptocurrency market is highly volatile, and the price of ITFX tokens may fluctuate sharply due to market sentiment, project progress, macroeconomic factors, and more. Additionally, the solvency of decentralized insurance protocols depends on the health of their liquidity pools.
• Compliance and Operational Risks: Global regulatory policies for cryptocurrencies and decentralized finance remain unclear, and future regulations may impact project operations.
• Information Transparency Risks: Lack of transparency regarding the core team may increase project risk.
• Liquidity Risks: If token trading volume is insufficient, it may lead to difficulties in buying or selling, affecting asset liquidity.

Please remember, the above information is not investment advice. Crypto asset investment carries extremely high risk. Be sure to conduct thorough due diligence and make decisions cautiously.

Verification Checklist

To further understand INS3.Finance, you can verify and research through the following channels:

• Official Website: https://www.ins3.finance/#/
• Whitepaper/Documentation: The project’s Gitbook usually contains detailed technical and economic model information: https://ins3.gitbook.io/docs/
• GitHub Activity: Visit the project’s GitHub repository (https://github.com/ins3project) to check code update frequency and developer community activity, which reflects project development and maintenance status.
• Block Explorer Contract Address: On platforms like CoinMarketCap, you can find the ITFX token’s contract address on BSC and other chains. Use block explorers to check token holder distribution and transaction records.
• Audit Report: The official documentation mentions Beosin’s audit report for INS3 v1.5. Find and read this report to understand the project’s security assessment.
• Community Media: Follow the project’s Twitter (@INS3INSURANCE), Telegram, Medium, and Discord official community channels for the latest updates and discussions.

Project Summary

INS3.Finance is an innovative project dedicated to providing decentralized insurance for blockchain assets. By combining DeFi, NFTs, oracles, and cross-chain technology, it aims to address the pain points of traditional crypto insurance and offer a more transparent, efficient, and automated claims process. Its core highlights include the use of independent claim oracles and NFT policies to reduce human intervention and enhance policy liquidity. The project has been deployed on several major public chains and is actively advancing decentralized governance.

However, as an emerging blockchain project, INS3.Finance also faces various risks in technology, market, and regulation. Before getting involved, it is strongly recommended that you research all available official materials and conduct a comprehensive risk assessment. Remember, this is not investment advice—any investment decision should be based on your own judgment and risk tolerance.