Episode Details
Title | Why Crypto Needs Better Insurance Models | Drew Patel, Karak |
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Date | 7/9/2024 |
Podcast | Empire ↗ |
Key Insights
Bullish:
- 🟢 $ETH - Various speakers discuss the potential of Ethereum, focusing on its use cases, staking, restaking, and its role as pristine capital.
- “It doesn't have to only live on Ethereum... There's use cases all over the entire crypto sphere for restaking infrastructure.” - Drew (0:00)
- “ETH is the cleanest capital... ETH can be considered as pristine capital.” - Drew (0:00)
- “The general premise that has always excited me about just the ability to create more sophisticated insurance models is that you can measure risk far more effectively in an open transparent system.” - Santiago (0:00)
- “Staking is way more easy to model... You know exactly when where the loss will occur.” - Drew (0:00)
- “The risk is a lot less, and it's way more model. Like, you can model it and then you can sell it potentially to the traditional insurers as, or reinsurers, and, you know, maybe get, like, a 100 or $10, 000, 000 line to to underwrite.” - Drew (0:00)
- “Restaking is just putting dot like, you're basically putting dollars up dollars economic security in exchange for awards.” - Drew (0:00)
- “Restaking is very similar to what we were doing on the DeFi insurance side... If you get to the technicals of what we were doing was, basically, you write on chain invariance and say, hey. If these invariance are triggered, payout occurs.” - Drew (0:00)🔒
- “The way we've approached this, like, hey. Let's start small. Let's we haven't been a $1, 000, 000, 000 cap because there's not many no 1 can make a case of you need more than $1, 000, 000, 000 in the account like, an application need more than $1, 000, 000, 000 in the account security.” - Drew (0:00)🔒
- “The base case, I think, for the most part, slashing should pretty be pretty minimal. If they actually if slashing become AAAA common thing, this whole restaking, it just doesn't work.” - Drew (0:00)🔒
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