We build decentralized insurance protocols. Smart contract cover, risk pool management, automated claims processing, and parametric insurance on blockchain.
DeFi insurance addresses one of the biggest barriers to institutional and mainstream DeFi adoption — the risk of smart contract exploits, protocol failures, and oracle malfunctions. Users who deposit significant value into DeFi protocols need assurance that their funds are protected. Arthiq builds insurance protocols that provide this protection through decentralized risk pooling and automated claims processing.
Our insurance protocol development draws on understanding of both traditional insurance mechanics and DeFi-specific risks. We design risk models that accurately price smart contract exploit risk, oracle failure risk, and economic attack risk. These models are implemented in smart contracts that manage capital pools, price premiums, and process claims without centralized intermediaries.
Whether you are building a general-purpose DeFi insurance protocol, a parametric insurance product for specific events, or an embedded insurance feature within an existing DeFi protocol, our team delivers the actuarial modeling and smart contract infrastructure that insurance products require.
Insurance protocols need capital pools that can absorb losses when claims are paid. We build risk pool architectures where capital providers deposit funds in exchange for premium income, with their capital at risk if covered events occur. Pool design includes configurable risk parameters, diversification across covered protocols, and capacity management.
Our pool contracts manage the lifecycle of insurance capital — deposits from capital providers, premium collection from policyholders, claims payment when covered events occur, and profit distribution after coverage periods expire. Capital provider shares are calculated fairly based on the time-weighted capital they contributed during the coverage period.
We implement tiered pool structures where junior capital absorbs losses first, providing higher returns, while senior capital has lower exposure and lower returns. This tranching enables risk appetite matching — conservative capital providers can participate with limited downside while risk-tolerant providers earn premium returns.
Accurate premium pricing is essential for insurance protocol sustainability. We build risk pricing models that consider protocol audit history, TVL and smart contract complexity, historical exploit frequency for similar protocols, and current market conditions. These models produce premium rates that attract policyholders while adequately compensating capital providers.
For protocols with governance-adjusted pricing, we implement parameter governance that allows token holders to update risk assessments for covered protocols. This decentralized risk assessment combines the wisdom of the community with quantitative risk factors.
We also build actuarial dashboards that track key insurance metrics — coverage ratio (total coverage versus total capital), claims frequency, average claim size, and capital provider returns. These metrics help protocol governors maintain the financial health of the insurance system.
Claims processing is where insurance protocols must balance speed with fraud prevention. We implement multiple claims resolution mechanisms — governance-based claims voting where token holders assess claim validity, optimistic claims processing where claims are automatically approved unless challenged, and parametric triggers that pay claims automatically based on on-chain events.
Parametric insurance is particularly well-suited to blockchain — if a specific on-chain event occurs (a contract is paused, an oracle reports a price crash, a protocol loses TVL beyond a threshold), the insurance contract automatically pays all affected policies without requiring manual claims filing. This eliminates the friction and subjectivity of traditional claims processing.
For governance-based claims, we build assessment interfaces where claim evaluators review evidence, cast votes, and track resolution progress. Appeals mechanisms and dispute resolution processes ensure fair treatment of both policyholders and capital providers.
DeFi insurance is most effective when embedded directly into the protocols it covers. We build embedded insurance integration where users can purchase coverage as part of their DeFi interaction — depositing into a lending protocol and buying smart contract cover in the same transaction.
Our integration work includes building coverage widgets for partner protocols, API-based coverage purchasing for aggregators, and SDK libraries that make it easy for other developers to integrate your insurance protocol into their applications.
Arthiq builds DeFi insurance protocols that make the decentralized economy safer for all participants. Our Singapore-based team combines actuarial thinking with smart contract engineering to deliver insurance infrastructure that genuinely protects users. Contact founders@arthiq.co to discuss your insurance protocol.
We build insurance infrastructure with risk pools, pricing models, and automated claims. Making DeFi safer through decentralized risk management.