At Neptune Mutual, we aim to build the first generation DACO, a fully decentralized autonomous cover organization. From purchasing cover from a pool, reporting an incident, dispute resolution, to claims payout, everything is fully transparent and decentralized.
Neptune Mutual DAO is not a decentralized insurance protocol. The Neptune Mutual protocol is based on the parametric coverage model which is an alternative form of insurance to protect policyholders from financial risks.
Unlike a discretionary mutuals, you do not need go back and forth between the underwriters, claims assessors, loss adjusters, or any middlemen, centralized party, and privileged users to receive your claims payout. There is no need for a verification and assessment of the cover you purchased. Anyone who has cToken can fully claim the cTokens for an equal amount in stablecoin payout whenever a cover incident occurs. If a cover claim is valid for one, it is equally valid for the rest of the policyholders.
Through governance, the Neptune Mutual DAO can easily handle any cover situation. However, we’re only focusing on the smart contract and exchange coverage initially. The primary reason is commercial and competitive advantages and opportunities for our DAO.
Based on parameters defined in the contract. Resolution achieved via governance portal.
Open, fair, inclusive, and non discriminatory
Based on the discretion of special privilege users.
Closed, requires KYC and special membership, possibility of discrimination via discretion
Incident or Exploit → Reporting
Claim → Assessment
Proof of Loss Submission
Guaranteed Payout (On Positive Resolution)
Resolution Achieved Via
Claims assessor's decision
Claims Process and Decision (On Positive Resolution)
Fast and immediate
Extremely slow and complex based on the discretion of claims assessor
Highly Scalable. A single resolution will be applicable for everyone.
Less Scalable. Decision for each claim has to be individually assessed.