Earn Rewards by Staking

Insurance staking involves depositing your crypto assets into a pool that provides the capital necessary to back insurance policies. As a staker, you earn rewards from the premiums paid by policyholders, as well as protocol token emissions. Your stake essentially serves as collateral that can be used to pay out legitimate insurance claims.

Staking rewards come from multiple sources: a portion of the insurance premiums paid by users, protocol token emissions, and in some cases, yield generated by investing the capital in other secure DeFi protocols during periods when it's not needed for claims. The exact APY varies based on demand for insurance, the specific pool you're staking in, and market conditions.

If multiple insurance claims occur simultaneously, a portion of the staking pool may be used to pay these claims. This is the risk associated with staking. However, we implement several risk management strategies to mitigate this: diversification across different types of insurance, reinsurance arrangements, claim caps, and maintaining reserve ratios. Higher risk pools offer higher APYs to compensate for this additional risk.

Each staking pool has a minimum lock period during which your funds cannot be withdrawn. After this period, you can withdraw your stake plus accumulated rewards at any time. The lock periods range from 14 days for low-risk pools to 60 days for high-risk/high-reward pools. There are no withdrawal penalties after the lock period has passed.

Our staking pools currently accept USDC, USDT, DAI, ETH, and our native $INS token. Different pools may have different accepted assets, so be sure to check the pool details before staking. In most cases, stablecoins are preferred for insurance backing to maintain consistent coverage values.

Security is our top priority. All smart contracts are audited by leading security firms including Trail of Bits, Certik, and OpenZeppelin. We maintain a bug bounty program and implement a time-locked governance system. Additionally, we use decentralized oracles for trusted data feeds and maintain a conservative reserve ratio. However, as with all DeFi protocols, smart contract risk cannot be completely eliminated.

In most jurisdictions, staking rewards are considered taxable income. However, tax treatments vary by country and individual circumstances. We provide comprehensive reporting tools to help you track your earnings, but we recommend consulting with a tax professional for advice specific to your situation.

Yes, organizations can participate in staking. For institutional stakers, we offer additional features including multi-signature wallet support, enhanced reporting, and in some cases, customized staking arrangements. Please contact our team directly to discuss institutional staking options.