Details
Insuracle is developing a decentralized parametric insurance platform that automates policy issuance, verification, and claims processing using smart contracts and oracle networks. By leveraging verifiable, objective data inputs (such as flood water levels or stolen credentials on the dark web), Insuracle eliminates subjective claim assessments and intermediaries, resulting in faster payouts, lower costs, and expanded coverage to traditionally underserved areas.
Our protocol will allow anyone to create, purchase, or invest in parametric insurance policies through a simple interface, while the underlying smart contracts handle the entire lifecycle automatically. When predefined conditions are met (verified through oracles), payouts are triggered immediately without requiring claims filing or manual review.
Insuracle will initially focus on two high-demand verticals: natural disaster coverage (floods, drought) and cyber risk protection, both areas where traditional insurance falls short in accessibility and response time. What innovation or value will your project bring to Arbitrum? What previously unaddressed problems is it solving? Is the project introducing genuinely new mechanisms.
Insuracle brings significant innovation to Arbitrum by establishing an entirely new financial primitive: automated parametric insurance. This represents one of the first comprehensive insurance protocols on Arbitrum, addressing a critical gap in the ecosystem's financial infrastructure.
Our key innovations include:
Risk-Transfer Primitives: We're creating the first dedicated insurance building blocks for Arbitrum, allowing other protocols to integrate risk protection directly. This enables new composable DeFi applications previously impossible without insurance components.
Real-World Data Infrastructure: Insuracle is developing specialized oracle adaptors for insurance-specific data sources (flood sensors, weather stations, cyber breach monitoring), expanding Arbitrum's connection to real-world data beyond price feeds.
Capital Efficiency Mechanisms: Our risk tranching approach introduces a novel way to segment and price risk on-chain, allowing capital providers to precisely target specific risk exposures with optimized returns—a mechanism not currently available on Arbitrum.
Insuracle solves several previously unaddressed problems:
Financial Protection Gap: No current Arbitrum protocol offers parametric protection for real-world risks affecting users' livelihoods and businesses.
Risk Hedging for DeFi Users: Arbitrum users currently have limited options to hedge against systematic risks affecting their portfolios and activities.
Accessible Insurance Alternatives: Traditional insurance remains inaccessible to many Arbitrum users, particularly those in emerging markets where centralized infrastructure is lacking.
Our genuinely new mechanisms include:
Multi-Condition Trigger Framework: Unlike simple binary oracle conditions, our protocol enables complex, multi-variable parametric triggers with graduated payout structures.
Geographic Risk Mapping: We're implementing on-chain geographic risk assessment for location-based parametric triggers, a novel capability for blockchain applications.
Automated Regulatory Compliance: Our protocol incorporates programmable compliance parameters to address insurance regulatory requirements across jurisdictions.
These innovations position Insuracle to become a foundational component of Arbitrum's financial ecosystem while extending the network's utility into previously untapped insurance markets.
What is the current stage of your project.
Raising funds to build MVP
Do you have a target audience? If so, which one.
Insuracle is currently at the conceptual development stage with preliminary market research and technical architecture design completed. We've developed:
High-level smart contract architecture for the core policy management and claims execution systems Technical specifications for oracle integration requirements across different parametric trigger types Initial UI/UX mockups for the policy creation and management interfaces Financial models for premium calculation across our initial target risk categories We have not yet implemented a working prototype, which is why this grant funding is crucial for progressing to that stage. With funding support, we plan to develop a minimum viable product on Arbitrum testnet within 3-4 months, focusing first on a simple flood insurance parametric product as our proof of concept.
Do you know about any comparable protocol, event, game, tool or project within the Arbitrum ecosystem.
The insurance vertical remains significantly underdeveloped on Arbitrum compared to other DeFi categories.
The closest adjacent projects include:
InsurAce - While they have deployed on Arbitrum, their focus is primarily on crypto-native insurance for smart contract failures, exchange hacks, and stable coin depeg events rather than parametric insurance for real-world risks. Their model relies on manual claims assessment rather than our fully automated parametric approach.
Neptune Mutual - They operate a coverage protocol for DeFi platforms against hacks and exploits on multiple chains including Arbitrum, but don't offer parametric insurance for natural disasters or cyber risks. Their coverage requires incident reporting and validation rather than using objective data triggers.
Risk Harbor - Recently deployed on Arbitrum, they offer protection for specific DeFi protocol risks but don't extend to parametric real-world coverage. Their focus remains within the crypto ecosystem rather than bridging to broader insurance needs.
This notable gap in the Arbitrum ecosystem creates a significant opportunity for Insuracle to establish a new category of financial services on the network. While insurance protocols exist on other chains (like Etherisc on Ethereum), their absence on Arbitrum means we can develop solutions specifically optimized for Arbitrum's technical capabilities and user base.
Our research indicates that parametric insurance represents one of the few remaining undeveloped financial primitives in the Arbitrum ecosystem, positioning Insuracle to become a category-defining protocol in this space.
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program or conducted any IRL like a hackathon or workshop.
N/A
Have you received a grant from any other entity in other blockchains that are not Arbitrum.
N/A
What is the idea/project for which you are applying for a grant.
Insuracle is developing a decentralized parametric insurance protocol on Arbitrum that enables instant, automated payouts for real-world risks. Unlike traditional insurance that requires lengthy claims processing, our smart contracts automatically execute payments when predefined, verifiable conditions occur (e.g., flood water reaching specific levels or data breach indicators appearing on monitoring services).
We're implementing a three-layer architecture:
Core Policy Contracts: Manage policy creation, premium collection, and automated claims execution Oracle Integration Framework: Connect to multiple data sources to verify trigger conditions with built-in redundancy Risk Pool Management: Enable capital providers to fund specific risk categories with granular exposure control We'll initially focus on two high-impact verticals where traditional insurance fails:
Natural disaster coverage (floods, drought) particularly for underserved regions Cyber risk protection for small businesses priced out of conventional coverage Our team combines actuarial expertise (Daniel Abraham, Bayes Business School) with cryptography and fintech experience (Kirill Slavin, Cambridge University, $100M fintech founder). This unique blend positions us to bridge traditional insurance principles with blockchain innovation.
Outline the major deliverables you will obtain with this grant.
Core Smart Contract Suite
Policy Factory contracts for creating standardized parametric policies Claims Execution Engine for automatic verification and payout Premium Pool contracts for capital management and risk diversification Comprehensive test suite and security implementation Oracle Integration Framework
Multi-source data verification system for reliable triggers Adapters for flood data, weather information, and cyber risk monitoring Fail-safe mechanisms to prevent false positives/negatives User Interface Components
Policy Management Dashboard for policy creation and monitoring Risk Assessment Interface for understanding coverage options Simplified claims tracking system Technical Documentation
Complete technical specifications and architecture documents Integration guides for oracle providers and data sources Developer documentation for extending the protocol Testnet Demonstration
Fully functional flood insurance product on Arbitrum testnet Documentation of end-to-end user flows Performance and gas optimization metrics Please explain how your idea/project aligns with the Arbitrum ecosystem goals.
Insuracle aligns perfectly with Arbitrum's ecosystem goals in several key dimensions:
DeFi Expansion: We extend Arbitrum's DeFi capabilities into an entirely new vertical—parametric insurance—creating a new financial primitive that complements existing lending, trading, and yield platforms. This diversifies Arbitrum's financial ecosystem beyond current offerings.
Real-World Utility: Our protocol bridges blockchain technology to tangible real-world utility by addressing universal needs for financial protection against disasters and risks. This advances Arbitrum's mission of bringing practical blockchain applications to mainstream users.
Ecosystem Integration: Insuracle is designed to integrate seamlessly with existing Arbitrum protocols, enabling new composable use cases. For example, lending protocols could offer discount terms for borrowers with parametric insurance, creating synergistic ecosystem value.
User Acquisition: By addressing practical insurance needs, we'll attract new user segments to Arbitrum who are seeking financial protection rather than speculation—expanding the ecosystem's user base beyond crypto-natives.
Technical Excellence: Our implementation leverages Arbitrum's strengths in low transaction costs, high throughput, and security inheritance from Ethereum—all critical factors for a viable insurance protocol handling time-sensitive financial operations.
Sustainable Growth: Insurance represents a steady, sustainable source of TVL and transaction activity, contributing to Arbitrum's long-term growth with fundamentally different characteristics than volatile trading or lending markets.
What is your requested grant.
50000 USD
Website.
https://www.linkedin.com/in/kirillslavin/
Please provide a detailed breakdown of the budget in term of utilizations, costs and other relevant information.
Milestone 1: Architecture & Core Contract Development
Cost Category: 1. Personnel/Team Costs Hourly Rate: $50 Est. Number of Hours: 250 No of resources: 2 Total cost: $25,000 Notes/Justification: Covers lead smart contract developer and blockchain architect working on core policy contracts, claims execution engine, and test suite development. Includes security-focused development practices.
Cost Category: 2. Infrastructure/Software Licenses Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $2,000 Notes/Justification: Development environment setup, testing infrastructure, version control, CI/CD pipeline, and specialized development tools for smart contract testing.
Cost Category: 3. Equipment/Materials Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $0 Notes/Justification: No specific equipment needs for this milestone.
Cost Category: 4. Marketing/Outreach Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $0 Notes/Justification: No marketing activities planned for this technical development phase.
Cost Category: 5. Other Expenses Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $1,000 Notes/Justification: Legal consultation for insurance contract compliance and technical specification review.
Total: $28,000
Milestone 2: Oracle Integration & Risk Modeling
Cost Category: 1. Personnel/Team Costs Hourly Rate: $50 Est. Number of Hours: 140 No of resources: 2 Total cost: $14,000 Notes/Justification: Oracle integration specialist and smart contract developer implementing data source connections and trigger verification mechanisms.
Cost Category: 2. Infrastructure/Software Licenses Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $2,500 Notes/Justification: Oracle service testing fees, data provider API access, and specialized testing environments for trigger simulation.
Cost Category: 3. Equipment/Materials Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $0 Notes/Justification: No specific equipment needs for this milestone.
Cost Category: 4. Marketing/Outreach Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $0 Notes/Justification: No marketing activities planned for this technical development phase.
Cost Category: 5. Other Expenses Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $500 Notes/Justification: Technical documentation development for data providers and integration partners.
Total: $17,000
Milestone 3: User Interface & Testnet Deployment
Cost Category: 1. Personnel/Team Costs Hourly Rate: $40 Est. Number of Hours: 200 No of resources: 2 Total cost: $16,000 Notes/Justification: Frontend developer and UI/UX designer creating policy management interface and claim monitoring dashboard.
Cost Category: 2. Infrastructure/Software Licenses Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $1,500 Notes/Justification: Frontend hosting, UI component libraries, and testnet deployment infrastructure.
Cost Category: 3. Equipment/Materials Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $0 Notes/Justification: No specific equipment needs for this milestone.
Cost Category: 4. Marketing/Outreach Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $2,000 Notes/Justification: Creation of educational materials, user guides, and community onboarding resources for testnet users.
Cost Category: 5. Other Expenses Hourly Rate: - Est. Number of Hours: - No of resources: - Total cost: $500 Notes/Justification: User testing incentives and feedback collection tools.
Total: $20,000
GRAND TOTAL: $50,000
Provide a list of the milestones, with the USD amount of the grant associated to it, the deliverables that will be provided, and the estimated completion time.
Milestone 1: Architecture & Core Contract Development ($20,000) Deliverables:
Technical specification document with complete architecture design Core smart contract suite deployed to Arbitrum testnet (Policy Factory, Claims Engine) Functional test suite with 90%+ code coverage Security model documentation and initial vulnerability assessment Estimated Completion: 8 weeks from funding (End of Month 2) Milestone 2: Oracle Integration & Risk Modeling ($10,000) Deliverables:
Oracle integration framework with multi-source verification capability Working integration with at least one real-world data source for flood parameters Premium calculation module with configurable risk parameters Technical documentation for protocol integrators and data providers Estimated Completion: 12 weeks from funding (End of Month 3) Milestone 3: Pilots ($10,000) Deliverables: 2 pilots with insurance market players (insurance companies, MGAs, Reinsurers, brokers) Working with data flow in the client’s sandbox to demonstrate end-to-end process, including interoperability Estimated Completion: 16 weeks from funding (End of Month 4)
Milestone 4: User Interface & Testnet Deployment ($10,000) Deliverables:
Policy management interface (creation, monitoring, claims tracking) Complete end-to-end user journey for flood insurance product Public testnet deployment with demonstration capability Educational materials and user guides for community testing Estimated Completion: 20 weeks from funding (End of Month 5) Are milestones clearly defined, time-bound, and measurable with quantitative metrics where applicable? What are your reference KPI, if applicable, for each milestone.
Milestone 1: Architecture & Core Contract Development Quantitative Metrics:
100% completion of core contracts (measured by fulfilled specification requirements) Minimum 90% test coverage for all smart contract code Successful deployment to Arbitrum testnet with zero critical issues Passing 100% of defined test cases for policy creation and execution logic Reference KPI: GitHub repository with comprehensive documentation, passing test suite, and contract deployment verification on Arbiscan testnet explorer. Milestone 2: Oracle Integration & Risk Modeling Quantitative Metrics:
Successful data retrieval from at least one external source with 99%+ uptime Oracle integration verification latency under 30 seconds Premium calculation accuracy within ±3% of actuarial models 100% of trigger conditions correctly identified in simulation testing Reference KPI: Demonstration of end-to-end data flow from external sources to policy execution with timing and accuracy metrics documented in testing report. Milestone 3: Pilots Quantitative Metrics: 2 pilots with insurance market players (insurance companies, MGAs, Reinsurers, brokers) Working with data flow in the client’s sandbox to demonstrate end-to-end process, including interoperability Reference KPI: Pilot confirmations
Milestone 4: User Interface & Testnet Deployment Quantitative Metrics:
UI implementation covering 100% of core user journeys Average policy creation completion time under 5 minutes in usability testing Successful processing of 50+ test transactions on Arbitrum testnet User guide coverage for 100% of protocol functionality Reference KPI: Public testnet deployment URL with demonstration video showing complete policy lifecycle from creation to triggered payout. What is the estimated maximum time for the completion of the project.
The estimated maximum time for completion of the entire project is 5 months (20 weeks) from receiving grant funding.
Our timeline is structured to deliver incremental value while ensuring thorough development:
Milestone 1 (Core Contracts): 8 weeks Milestone 2 (Oracle Integration): 4 weeks (cumulative 12 weeks) Milestone 3 (UI & Deployment): 8 weeks (cumulative 20 weeks) This timeline includes buffer periods for addressing unforeseen technical challenges, particularly during oracle integration which typically involves external dependencies. The 5-month timeframe ensures we deliver a comprehensive testnet MVP within the 6-month maximum specified by the grant requirements.
How should the Arbitrum community measure the success of this grant.
The Arbitrum community should measure our success through these specific KPIs:
Technical Implementation Quality:
Successful deployment of fully functional parametric insurance protocol on Arbitrum testnet Minimum of one parametric insurance product (flood insurance) with complete end-to-end functionality Zero critical security vulnerabilities in the final implementation Complete open-source codebase with comprehensive documentation Ecosystem Contribution:
Introduction of parametric insurance as a new financial primitive on Arbitrum Extension of Arbitrum's DeFi capabilities into the insurance vertical Development of reusable components for oracle-based parametric triggers Publication of at least 2 technical articles explaining the implementation Adoption Readiness:
Protocol successfully handles simulated disaster scenarios in testing Gas optimization demonstrating economic viability for policies as small as $100 User interface enabling non-technical users to interact with the protocol Development of at least 1 integration example for other Arbitrum protocols Performance Metrics:
Average policy execution time under 2 minutes from trigger to payout Successful processing of at least 50 test transactions Oracle data verification with 99%+ accuracy rate Zero false positives/negatives in trigger execution during testing These concrete metrics will demonstrate both our technical delivery and contribution to expanding Arbitrum's capabilities into the insurance sector.
What is the economic plan for maintaining operations or continuing the growth of your project after the grant period.
Our economic sustainability strategy has four key components:
Revenue Mechanisms:
Protocol Fee: A small percentage (0.5-1%) of premium volume will fund ongoing development and maintenance Integration Services: Technical support for protocols integrating our insurance primitives Custom Implementation: Specialized parametric trigger development for specific business applications Strategic Investment:
We've already initiated preliminary discussions with three DeFi/insurtech VCs interested in supporting further development after demonstrating the testnet MVP Our unique positioning at the intersection of DeFi and traditional insurance creates compelling investment opportunities Ecosystem Integration:
Developing partnerships with other Arbitrum protocols to create insurance integrations Collaborating with data providers for specialized oracle implementations Building relationships with traditional insurance/reinsurance companies seeking blockchain expansion Operational Efficiency:
Maintaining lean development and operations with remote-first approach Leveraging Arbitrum's cost efficiency for sustainable operations Building active community contributors to support non-critical development The parametric insurance market represents a multi-billion dollar opportunity, with substantial growth potential in both crypto-native coverage and traditional insurance markets. Our focus on real-world, tangible insurance use cases creates natural revenue streams that don't rely on token incentives or unsustainable yield mechanisms, ensuring long-term viability beyond the grant period.
Protocol Performance.
As Insuracle is currently at the idea stage, we do not have historical protocol performance metrics to report. We are starting with a clean slate, focusing on developing a robust parametric insurance solution from the ground up. Our KPIs will be established during development, with initial benchmarks focusing on smart contract efficiency, oracle response times, and policy execution reliability as outlined in our milestone deliverables.
Audit History & Security Vendors.
N/A
Is your project composable with other projects on Arbitrum.
Insuracle is designed with composability as a core principle, though implementation is pending development. Our parametric insurance protocol will enable multiple integration points with existing Arbitrum projects:
Coverage for DeFi protocols - allowing projects to offer users protection against specific platform risks
Insurance primitives as building blocks - enabling lending platforms to incorporate risk protection directly into their products
Premium pool liquidity - creating opportunities for yield aggregators to incorporate insurance premium strategies
Oracle data feeds - leveraging and extending existing oracle infrastructure for specialized insurance triggers
The modular design of our smart contracts will specifically enable these integrations through standardized interfaces, with implementation details to be finalized during development.
Is the proposal scope realistic and well-defined given the team, resources, and deliverables.
Yes, our proposal scope is realistic and carefully calibrated to our team's expertise and the requested resources. We've taken a pragmatic approach by:
Focusing on a single parametric insurance product (flood coverage) for our initial MVP rather than attempting multiple insurance types simultaneously
Limiting oracle integration to one or two data sources initially while building an extensible framework
Prioritizing core contract functionality over complex UI features for the first release
Setting a reasonable 5-month timeline that acknowledges the complexity of insurance-specific blockchain development
Our team combines the essential expertise required - actuarial science, smart contract development, and insurance industry experience. The deliverables are concrete and measurable, with clear technical specifications that will guide development. The budget allocation directly supports the critical path to a functional testnet MVP without including unnecessary scope expansion.
Instagram.
LinkedIn.
https://www.linkedin.com/in/daniel-abraham-909448202/
Discord.
Others.
Do you acknowledge that your team will be subject to a KYC requirement.
Yes
Do you acknowledge that, in case of approval, you will have to provide a report at the completion of the grant and, three months later, complete a survey about your experience.
Yes
Team experience and completeness.
Our team brings directly relevant experience to this project:
Kirill Slavin:
Led development of enterprise-grade financial systems processing millions of transactions Scaled a fintech startup to $100M+ valuation as founder/CEO Cybersecurity expertise as global chief executive for a decacorn company Successfully launched rebrew.io, a blockchain project for monetizing reviews as NFTs Deep knowledge of cryptographic principles and secure system design Daniel Abraham:
Actuarial science degree with specialized coursework in risk modeling and catastrophe simulation Developed risk assessment models for cyber insurance products at a cybersecurity startup Proficient in statistical analysis and financial modeling essential for insurance premium calculation Active in DeFi development with focus on financial applications of smart contracts Together, we uniquely combine traditional insurance expertise with blockchain development experience, positioning us ideally to bridge these domains successfully.