• Proposal

  • OIP-42: Insurance coverage for smart contracts - rewards distribution

Summary

The DAO has been working with insurers to provide smart contracts vulnerabilities coverage for the community and has secured the first coverage from InsurAce. As part of the partnership, InsurAce is offering premium discounts to coverage buyers and rewards to Olympus DAO. Within the DAO, we decided the community should vote on how the rewards are to be distributed:

Option A: 10% discount to insurance purchasers

Option B: 5% discount to insurance purchaser + 5% revenue share to Olympus

Motivation

We hear the community requesting for insurance coverage and has now secured smart contract coverage for your OHM and/or staked OHM.

This is an optional purchase and the premium is set at 4.5% p.a. to cover against loss of insured’s sOHM due to an unauthorized, malicious or criminal act aiming at exploiting Olympus smart contracts’ code vulnerabilities.

The loss needs to permanently irreversible with no means of repayment or recovery by any parties in the future. It can be in form of being moved to another address or addresses, which the insured cannot access or control permanently; and the loss is directly linked to the wallet address which the insured used to purchase the cover or the insured provides evidence to prove the ownership of the impacted wallet address.

Proposal

Decide on option A or B.

The initial launch will have a pool size of $10m. i.e. up to $10m in coverage can be purchased. After the launch, we will gauge the actual demand by the community and if demand outstrips supply, we have secured agreement with InsurAce on the option to increase the pool size by staking. This will enable the coverage pool size to be increased by a factor of 4 based on the amount Olympus stakes. If and when that happens, the DAO will discuss the amount to stake and thereafter present to the community for voting.

Polling Period

The polling process begins now and will end at 00:00 UTC on 10/11/2021. After this, a Snapshot vote will be put up at 00:30 UTC on 11/11/2021

FAQ document

Update: Vote is live on Snapshot

https://snapshot.org/#/olympusdao.eth/proposal/0x1793d2eef3287e6a2638f3daf5e3da8fd283cfd4c105545c774ee9feaf32825a

[Update - Clarification]

Option A: 10% discount is a rebate i.e. receive 10% of the premium paid as rebate in the form of $INSUR

Should all the discounts go to the community

This poll has ended.
6 days later

Hey Devoltiare - could you explain a bit more what you mean by staking? This will enable the coverage pool size to be increased by a factor of 4 based on the amount that Olympus stakes. If and when that happens, the DAO will discuss the amount to stake and thereafter present to the community for voting.

    Mark11 Hi Mark11, this is where the DAO participates in their liquidity mining program by contributing to any of the current 6 pools available with the following estimated APY:

    • ETH / 11.59%
    • WETH / 10.48%
    • DAI / 33.12%
    • USDC / 18.93%
    • USDT / 42.71%
    • INSUR / 43.36%

    The current coverage capacity of the Olympus pool is $10m (unused). If the DAO stakes$ 2m, InsurAce can increase the coverage pool size by an additional (2x4) = $8m, bringing the total coverage pool size to$ 18m. This is something we managed to negotiate with InsurAce on how to increase the coverage pool size. We will only need to consider this if the current $10m pool is snapped up and the community requests for more coverage. When that happens, I am sure this will be brought forth to the DAO to discuss the amount to stake and then ask the community to vote.

      Q1 : Will the individuals be able to buy the insurance directly or will the individuals has to pool together for the insurance.
      Q2 : Is 10% the discount on the insurance premium of 4.5% per annum
      Q3 : In the discord channel, there are some reports of staked sOHM/wsOHM vanishing from the individuals wallet. Will the insurance cover against this ?

        puthinakattu Hi, wrt to the questions:

        Q1. Yes these are all on an individual basis, not on a pool together basis.

        Q2. Yes that is correct.

        Q3. sOHM represent staked OHM on the Ethereum network and if the tokens vanished/ got lost/ drained off the network due to a smart contract hack, this will be covered. As for the sOHM, on the web3 wallet, I think this is can be restored if it is a matter of one changing one's wallet and the sOHM isn't added. But if the sOHM is lost/ drained off due to one's carelessness that result in phishing, malware or etc.. such incidents are not covered. wsOHM are not on Ethereum so this is not covered.

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