User Journey through BQ Labs
The BQ Labs platform offers a seamless, decentralized process for various participants, including Sponsor, Stakers, and Proposers, enabling them to easily create, stake in, or purchase insurance products. This user flow illustrates how each persona interacts with the platform, highlighting the efficiency, transparency, and security built into the system.
Sponsor Persona: Sarah
Scenario: Sarah, a representative from a Bitcoin Layer 2 project, wants to create an insurance product.
Setting Up Pools: Sarah logs into the BQ Labs platform and creates a coverage pool. She customizes the pool by specifying important parameters such as coverage limits, digital assets to be used, and risk management rules.
Raising Capital: Sarah defines the terms for liquidity provision, inviting Stakers to contribute assets to the pool by offering attractive yields based on the risks covered.
Launching the Insurance Product: Once the pool is sufficiently funded, Sarah launches her insurance product on the Insurance Marketplace, where it becomes available for purchase by Proposers. This allows her Bitcoin Layer 2 project to gain additional security and trust by offering decentralized insurance.
Outcome: Sarah successfully creates a coverage pool, attracting liquidity providers and offering security to users of her Layer 2 project.
Staker Persona: Bob
Scenario: Bob, a high-net-worth individual, decides to stake his assets in a coverage pool.
Connecting Wallet: Bob logs into the BQ platform, clicks on "Connect Wallet," and chooses his preferred wallet provider, securely connecting his wallet to the platform.
Selecting a Pool: Bob navigates to the Insurance Marketplace and reviews various coverage pools. He finds a pool offering an attractive APY that aligns with his risk tolerance.
Providing Liquidity: Bob stakes his assets in the selected pool. In return, he earns LIT and participation rewards through the offered APY, which increases over time as more insurance products are sold and managed within the pool.
Outcome: Bob generates passive income by staking his assets in a decentralized insurance pool while contributing to the security of the ecosystem.
Proposer Persona: Alice
Scenario: Alice, a retail investor, seeks to protect her Bitcoin assets during DeFi activities.
Connecting Wallet: Alice accesses the BQ Labs platform and clicks "Connect Wallet." After selecting her wallet provider, she successfully connects her wallet and gains access to the platform.
Analyzing Insurance Options: Alice navigates to the Cover Section, where the platform analyzes her DeFi positions and Bitcoin holdings, automatically suggesting relevant insurance products that suit her needs.
Purchasing Insurance: Alice reviews the premium quotes provided by the system, selects the insurance product that best covers her risks, and purchases coverage with a simple click.
Outcome: Alice successfully secures her Bitcoin positions in the DeFi ecosystem, gaining peace of mind knowing her assets are protected from potential risks.
Claims Process
The BQ Labs platform offers a streamlined claims process, designed to be fair, transparent, and fast. Depending on the type of insurance purchased, claims are processed through two mechanisms:
Parametric Claims: For certain predefined events (e.g., smart contract failures, protocol exploits), claims are processed automatically via smart contracts. Once the triggering event occurs, the contract executes the payout instantly without the need for manual intervention. This ensures fast, reliable claim resolution, providing immediate protection to users like Alice.
Governance-Based Claims: For traditional insurance products, claims undergo a decentralized review process. The governance members—comprising security experts, risk analysts, and bug bounty participants—assess each claim thoroughly, ensuring it meets the predefined criteria and policy rules. This process guarantees an unbiased and fair decision. Upon approval, payouts are processed within three days, providing users with prompt compensation.
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