🏯Use cases

Unistar can cover many different types of risk and is suitable for many types of insurance buyers. This leads to a wide range of use cases:

● Stablecoin pegs: Stablecoins are pegged to cryptocurrencies, fiat currencies or exchange-traded commodities. It so happens that they trade at a price above or below their pegged rate. The dedicated policies listed on Unistar compensate for losses that occur when a stablecoin loses its peg and trades at a price below a given time-weighted average price (TWAP) within a predetermined timeframe.

● Custodian: The custodian is the entity that protects or holds the user's funds. This type of insurance protects funds held by the custodian against direct hacking/depletion. Where the custodian is insured (as is the case with Coinbase Custody, BitGo and Ledger Vault), the policy listed on Unistar will specify that it will only cover losses in excess of the custodian's policy.

●Wallet: A wallet is anything that stores a user's funds without the use of a custodian. It can be a hardware wallet or a software wallet. Unistar policies in this category will cover large scale exploits in product firmware or software.

● Exchanges: Exchanges are entities that provide custodial services, but also provide a marketplace for conducting transactions. Exchange hacks occur and often result in the loss of user funds unless the exchange itself compensates. Our policy on exchanges will cover hacking attacks and political events (e.g. government confiscation of funds). Unistar's policy on the shelf will make it clear that it will only cover losses that may not be covered by the Exchange Insurance Fund.

● DAPPs : DAPPs, or decentralised applications, are products built on various blockchains that allow users to perform actions on the chain. They are based on smart contracts that may be vulnerable, and these vulnerabilities often result in the loss of user funds.

● Reduction: Validators exist to verify incoming on-chain transactions and protect PoS (Proof of Stake) blockchains. On a PoS blockchain, pledged assets may be curtailed if the verifier misbehaves (breaks network consensus, node downtime or double signatures). The percentage reduction represents a penalty for invalid validation and varies from network to network and from one type of misconduct to another. Other. It can result in a loss of funds for the validators, and subsequently for the entities with which those validators pledge.

● Prophecy machines: Prophecy machines are essential for many DeFi platforms. They provide a price point at which many contracts require price data to be retrieved in real time. A failure in a price prognosticator would be an example of a covered event. Any losses suffered by the user in such an event will be borne by Unistar.