Meet Helmet
On this page you will find introduction about Helmet.insure, which include the instructive information about assets price insurance and the guide for trading policy on Helmet.
Why Helmet？
In traditional financial market , derivatives such as options has been shown as effective in hedging the risks of market volatility. But the market lack transparency and better infrastructure to improve efficiency. Considering that assets with high liquidity were eligible to be designed as options products, "The Options" became a unique tool to serve commodity traders.
With DeFi's infrastructure, anyone has right to price an asset on SWAP with unlimited liquidity. What makes us thinking is that if there's a tool or a platform where a crypto trader or holder could simply issue an advanced 'price based insurance' which could hedge price fluctuation and get rewards at the same time. Such things could help DeFi users and traders to reasonably evaluate their holding and risks.
We expect a picture that anyone in DeFi world, instead of centralized institutions, could create hedging tool for others at any time.
It's time to redefine"Option".
Introduction
Helmet is a peer-to-peer insurance protocol written by option trading logic, which allows anyone to create any insurance policy easily in the market.
Unlike other insurance products you may have used, Helmet does not solve the problem of “Code Attack Risk” but allows DeFi users to be protected against the risk of price fluctuations.
Helmet.insure, developed on BSC ( Binance Smart Chain), specialize in providing price-shield insurance for BSC assets. The types of insurance depends on token holders and traders.
Helmet offers insurance suppliers the right to "LOGO" modules by four elements——including insurance usage scenarios, type of insurance asset, insurance period, and insurance prices, allowing suppliers to flexibly assemble the types of insurance to sell and giving a variety of hedging strategies to the market.
In order to brief how to use the product, we have developed several insurance products as examples : "Cover 100% up" , "Cover 50% off ".
There are two roles in Helmet eco, Policy Supplier and Policy Holder. Supplier is the creator & seller of insurance policy. When they make the selling order to market, they could earn a little stable Helmet token reward. Holder is the buyer of insurance, and they could get the policy by paying to Supplier. When the policy mature, they could choose to claim or abstain the insurance based on the SWAP price. For example, Peter bought a 1 month of "Cover 50% off " insurance of A token, in this period, the price of A dump 50%, then Peter could claim it and earn a premium to hedge his lose.
Wanna get start with Helmet quickly? Join our community:
Discord https://discord.gg/QtTJZEVds5
Twitter https://twitter.com/Helmet_insure
Telegram https://t.me/helmet_insure
GitHub https://github.com/helmet-insure
LONG&SHORT
The core of Helmet is LONG& SHORT Token. LONG&SHORT Tokens are created 1: 1 when the Supplier publish a policy AD.
Each Policy specifies Four Elements：
Denominated asset、Underlying asset、Policy price 、Insurance period
【Learn more about Four Elements at Technical terms】
To make sure the holders could claim insurance, suppliers are supposed to deposit denominated assets. Once a supplier publish a policy, the denominated asset will be locked in smart contract, at the same time, Helmet will create a SHORT Token for supplier and a LONG Token to the market.
Anyone buy LONG Token on the market is policy holder. The holder has rights to exchange the the insured asset to denominated asset at the policy ruled price before expiration.
When the policy is activated/ claimed by holders or expired, Supplier can get the insured assets from policy holder.
Create LONG Token
function exercise(uint volume, address[] memory path) public returns (uint vol, uint fee, uint amt);Create SHORT Token
function settle(uint volume) external returns (uint vol, uint col, uint fee, uint und);How does Helmet work?
Policy Supplier
Policy Supplier publish an insurance policy for sale by deposit the denominated assets and get SHORT Token.
We encourage project teams themselves or Token holders of project to become Suppliers to show reasonable expectation of token price for users.
How to become a Supplier
- 1.Ready denominated asset, choose the insurance type (cover up or off)
- 2.Price the premium
- 3.Publish insurance policy by depositing denominated assets
- 4.Get back the denominated assets or get the insured assets from buyers after they activate the policy
Benefits
Cover up:
- Provide insurance for LPs, encourage more people provide liquidity
- Earn premium
- Participates in SHORT Token mining by staking the Short Token
Cover off:
- Provide a bottom price of Token for users
- Avoid the underlying assets(object be insured)liquidity provider's impermanent loss
- Earn premium
- Participates in SHORT Token mining by staking the Short Token
- Another way to buy insured assets at a reasonable price with earning premium when the token's liquidity is low.
【Learn more about Cover up & Cover off at Techniacal terms】
Risk
- Lose part of valuation when the buyer activate the policy.
Policy holder
Policy holder could get LONG Token to avoid the price dump loss when they "farm".
How to become a holder
- Buy a cover up or cover off policy in the market
Benefits
- The insured asset's price will be protected in policy time period
- When the price of insured assets higher or lower than the policy set price, holders could activate the policy to claim.
Risk
- If holders do not activate the policy, they would lose the premium
Example
Ryan who holds BNB, wants to participate in LPT（Liquidity provider Token）mining, but he worries about the HELMET dump. So he needs a hedging tool.
If 1 HELMET is equal to 4.5 BNB. He spends 0.1 BNB to buy a cover 50% off policy at 2.25 BNB on Helmet.insure. A week later, Ryan decides to stop mining and withdrew HELMET, finding that the HELMET dump to 2 BNB, so he activated the policy. Correspondingly, he could swap 1 HELMET for 2.25 BNB, avoiding the loss of 0.25 BNB by paying only 0.1 BNB premium.
Last modified 7mo ago