Etherisc Launches USDC Anchor Release Insurance Product Supported by Chainlink

According to reports, the blockchain insurance agreement Etherisc has announced the launch of a USDC anchor free insurance product supported by Chainlink. If the price of USDC stable currency falls below 0.5% of its $1 anchor value (i.e. below $0.995) for more than 24 hours, customers will receive automatic compensation.

Etherisc Launches USDC Anchor Release Insurance Product Supported by Chainlink

1. Introduction
2. Understanding the Blockchain Insurance Agreement
3. What is USDC and Chainlink?
4. The USDC Anchor Free Insurance Product Supported by Chainlink
5. Benefits of the USDC Anchor Free Insurance Product
6. How Does the USDC Anchor Free Insurance Product Work?
7. Risks and Drawbacks of the USDC Anchor Free Insurance Product
8. Conclusion
9. FAQs
# Article
The adoption of blockchain technology in the insurance industry has revolutionized the way we think of insurances. Etherisc, a blockchain insurance agreement, has recently announced the release of a USDC anchor free insurance product supported by Chainlink. The product ensures compensation to the customers if the price of the USDC stable currency falls below 0.5% of its $1 anchor value for more than 24 hours. In this article, we will explore what blockchain insurance is, the concept of USDC, and Chainlink. We will then dive into the details of the USDC anchor free insurance product, its benefits, how it works, and its drawbacks.

Understanding the Blockchain Insurance Agreement

The insurance industry has come a long way since its inception in the 17th century. The traditional insurance industry follows a centralized model, where a third-party insurer acts as a mediator between the customer and the beneficiary. But, the emergence of blockchain technology has introduced a decentralized model, where the intermediary is replaced by smart contracts. Etherisc is a blockchain-based insurance platform that enables customers to choose, price, and purchase their insurance coverage swiftly, transparently, and inexpensively.

What is USDC and Chainlink?

Stablecoins are digital currencies that remain stable against market fluctuations. USDC is one such stablecoin pegged to the US dollar on a 1:1 ratio. It is one of the most used stablecoins in the crypto market, offering a quick and affordable way to transfer digital assets. Chainlink is a decentralized oracle network that acts as a bridge between blockchain technology and real-world applications. It aims to provide tamper-proof and secure access to external data sources.

The USDC Anchor Free Insurance Product Supported by Chainlink

The launch of the USDC anchor free insurance product aims to reduce the risks involved in transacting with stablecoins and curb their volatility. The product aims to assure customers that they will receive compensation if the price of USDC falls below its $1 anchor value for more than 24 hours. The product utilizes Chainlink’s reliable data feeds and oracle networks to report the correct USDC market value.

Benefits of the USDC Anchor Free Insurance Product

The USDC anchor free insurance product provides many advantages to customers. Firstly, it assures the customers that they will be compensated for their losses incurred due to market volatility. Secondly, it provides a safe and secure way to transact with stablecoins and curbs the risks related to cryptocurrency transactions. Thirdly, the compensation is automatic, eliminating the need for any legal formalities.

How Does the USDC Anchor Free Insurance Product Work?

The USDC anchor free insurance product uses smart contracts to monitor the market value of USDC. The smart contract tracks the Chainlink’s external data feeds and oracles to ensure that the correct market value of USDC is reported. If the market value of USDC falls below 0.5% of its $1 anchor value for more than 24 hours, the customer receives automatic compensation.

Risks and Drawbacks of the USDC Anchor Free Insurance Product

Although the USDC anchor free insurance product offers many benefits, it is essential to consider its risks and drawbacks. Firstly, the product is is vulnerable to market manipulation, price fluctuations, and technical glitches. Secondly, the product is based on Chainlink’s external data feeds and oracles, which if compromised, can lead to incorrect reporting of the USDC market value. Lastly, the USDC anchor free insurance product has a steep fee structure, which may not suit small investors.

Conclusion

Blockchain technology is transforming the insurance industry, and Etherisc’s USDC anchor free insurance product supported by Chainlink is an exciting development that caters to the needs of investors who trade and transact with stablecoins. The product offers numerous advantages to customers, including security, tamper-proof access to external data sources, automatic compensation, and transparency. However, investors must also consider its drawbacks and risks before making decisions.

FAQs

Q1. Is the USDC anchor free insurance product expensive?
A. Yes, the product has a steep fee structure that may not suit small investors.
Q2. What is the market value of the USDC stablecoin?
A. The USDC stablecoin market value is pegged to the US dollar on a 1:1 ratio.
Q3. What happens if Chainlink’s external data feeds and oracles are compromised?
A. If Chainlink’s data feeds and oracles are compromised, it can lead to the incorrect reporting of the USDC market value, which can cause losses to investors.