Insure implements the concept of a unified risk pool. Each crypto-asset does not have an individual pool, this minimizes the risk for underwriters as a single pool is used to underwrite insurance for all crypto-assets supported by the protocol.
A unified liquidity pool indirectly translates to more liquidity for insurance buyers.
One can start underwriting insurance by supplying stablecoin (USDC) to the liquidity pool. Liquidity providers can withdraw their liquidity and earned premiums at any time.
The amount that can be withdrawn from the pool is subject to available liquidity inside the pool at that time.
After a user deposits USDC to the pool, they receive iUSDC tokens representing their shares in a pool. iUSDC is an interest-bearing token. Once a liquidity provider receives IUSDC tokens, they start earning premiums paid by insurance buyers proportional to their share in the pool.
Assets pooled by liquidity providers will be used to payout policies in an insured event.
To get protected against losses from insured events, users can purchase insurance. The available liquidity in the risk pool limits the maximum amount of cover that can be purchased. The policy period can be customized according to the need of the user. A user needs to pay the premium, including the protocol fees and insurance premium, to purchase insurance.