Decentralized insurance has two meanings. One is insurance products built with decentralized technology, such as flight delay insurance and crop insurance implemented by Etherisc through smart contracts on the blockchain, and the other is insurance around the DeFi ecosystem.
1、DeFi ecological insurance
2、
Decentralized insurance needs liquidity very much. Once the liquidity is insufficient, it will be difficult for Decentralized insurance to exert its own use value. At present, most of the Decentralized insurance mechanisms in the market provide opportunities for arbitrageurs. In addition, Decentralized insurance provides a high yield rate, so Decentralized insurance can still automatically obtain liquidity. However, the volume of Decentralized insurance is still small, the underwriting capacity and underwriting services of a single project are very limited, and the demand for liquidity is still large.
