The Backed Protocol Pre-Sale is scheduled to go live on Monday 28th June at 13:00 UTC. Participants will get a chance to buy and hold BAKT, the native ERC 20 token that powers the Backed platform.
Insurance buyers use BAKT to pay premiums to the insurer while also serving as a governance token that allows holders to vote and decide on the future updates and developments of the Protocol.
Early-bird investors looking to participate in the upcoming token sale event must deposit a minimum contribution of 0.1 ETH and a maximum of 1 ETH (1 ETH = 95,327 $BAKT). The token sale event is projected to raise 400 ETH and will be immediately followed by the listing of BAKT on leading exchanges. 1 ETH will be valued at 79,429 BAKT after the conclusion of the Pre-Sale offering.
A Revolutionary Model for Decentralized Insurance
Backed Protocol is the first decentralized, non-custodial insurance protocol for crypto trading that allows anyone to participate as an insurance buyer or seller.
Insured persons on the platform can customize their insurance contract to hedge their position up to 100% against volatility in the crypto market while benefiting from their upside potential. On the other hand, insurers can develop their insurance business and earn income from regular premiums.
The Backed Protocol’s decentralized insurance model eliminates intermediaries by executing contracts via an entirely dependable and verified smart contract. Therefore, two private parties (an insured and an insurer) can agree on a contract proposal and rely on an automated smart contract to execute the contract in a transparent and decentralized manner.
Each contract on Backed Protocol is fully customizable, automated, and trustless, giving individual users the freedom to keep total control of their insurance policies without any external interference. In addition, the platform facilitates both insurers and insured persons to customize each parameter of their insurance contract according to their objectives.
The project backers opted to focus their insurance model on crypto trading, as it is a privileged sector on the developing blockchain ecosystem. However, the platform has plans to extend its vision of decentralized insurance into other areas such as cancelled flight insurance and more.
A Closer look at Backed Protocol’s Insurance Model
The cryptocurrency market experiences extreme volatility that can be very attractive to pro investors, who often make huge profits from the daily market fluctuations. However, many amateur traders looking to cash in on the crypto market face the reality of regular market fluctuations that can result in huge losses.
Backed Protocol taps the incredible technological potential of the blockchain to help traders face the risks inherent in the unpredictable crypto market. It introduces a decentralized insurance structure that can enable investors to hedge against considerable swings in the crypto market while facilitating insurers to develop new business opportunities.
Anyone can take on the mantle of ‘insurer’ and build a community of insured by managing multiple contracts to boost their reputation and design more insurance contracts.
The new insurance model redefines the functioning of insurance contracts by allowing a contract’s parameters to be defined freely via users’ proposals on the platform. These proposals are listed and regulated by the laws of supply and demand. This unique approach allows both the insurer and the insured to define the value of each contract, guaranteeing that all contract proposals remain aligned to the needs of all users.
How to Use the Backed Protocol Service
Any crypto trader can become an insured person and hedge their positions against unfavourable market fluctuations. To become an insured person, users simply need to link their Metamask account and create their first insurance offer on the Backed website. Smart contracts then add the proposal to the platform’s offer list, allowing any user to join it.
The insured pays regular insurance premiums to the insurer as an insurance cover in case of the devaluation of his crypto holdings.
On the other hand, the insurer provides insurance coverage in stablecoins to insure a position and receives the insurance premiums paid by the insured in return. Just as the insured, the insurer can create a new contract proposal or join one that suits their objectives.
Once both parties agree on a contract proposal, Backed Protocol deploys its smart contract to execute the insurance contract and ensure compliance to all clauses in an automated, transparent and decentralized manner.