The global risk exchange GRE has received investment from Huobi, and will use blockchain to solve the pain points of traditional risk management

Odaily learned that GRE (Global Risk Exchange) announced that it has recently received investment from Huobi Global Ecological Fund. The new round of financing will be used to promote the international layout and ecological construction of GRE. Previously, GRE received investment from Shen Bo (founding partner of Fenbushi Capital), Gong Ming (Rage Prince Gong), Leading Capital, JRR Crypto, etc.

Global Risk Exchange GREIt is a Graphene-based, distributed, fully open-source global risk measurement and trading market, helping global institutions and individuals to conduct risk management and trading in a decentralized manner.

Paul Qi, insurance and risk control actuarial representative of the GRE Foundation, said that the traditional risk management model mainly has these pain points:

1. In the traditional insurance market, the homogeneity of insurance products is serious, the cost of sales channels is high, and a large amount of funds are used to pay insurance brokerage fees and business operating expenses. Moreover, there are still pain points such as a single type of insurance and the risk of leakage of users' personal identity information.

2. The traditional financial derivatives market is mainly due to the large scale of OTC over-the-counter transactions that cannot be counted, the frequent occurrence of counterparty risks, and the lack of liquidity caused by market panic.

Facing the above pain points,GRE's solution is - a decentralized risk exchange.

Due to the trustless characteristics of the blockchain, no license in the traditional industry is required, and anyone can safely trade risks on the platform and customize insurance protection individually. Among them, the corresponding insurance smart contracts are designed by actuaries.

Compared with traditional industries that require the participation of multiple parties such as policyholders, insurance brokers/agents, insurance companies, reinsurers, and insurance capital securitization products (such as catastrophe bonds, etc.), GRE requires insurers, policyholders, and underwriters , the five roles of GRE platform and witness.

Among them, the insurers are actuaries and product managers, who are responsible for designing the terms of the risk management contract, as well as the risk probability and the corresponding premium rate. Witnesses are responsible for collecting all risk transactions within a certain period of time, packaging transactions into blocks, signing blocks and broadcasting to the entire network, and reporting on the results of risk events that occurred during a certain period of time, packaging the results into blocks, signing and broadcast.

To give an example, for example, if the insurer wants to insure for an airline delay insurance, and some estimates say that the probability of delay is 40%, then the premium you pay is 40 tokens to get the possible compensation of 100 tokens, and the insurer puts 60 tokens into the smart contract. Then use a trusted data source from a third party to determine whether the plane is delayed. If there is a delay, the smart contract will be automatically executed, and 60 tokens from the insurer will be given to the policyholder, and the policyholder will be paid 100 tokens. If there is no delay, the smart contract will transfer the 40 tokens of the insured party to the insured party. The insurer here can be either an institution, a single person or multiple people, and does not need to have a corresponding license.

At the current stage, GRE has a community of actuaries responsible for the design of insurance products. For actuaries who design smart contracts, since the risk probability measured by each person is different, multiple actuaries can design the same product, and finally pass the market verification to measure the most fair contract, and the trading volume obtained will be The biggest, of course, will also be the most profitable. This can ensure that the product can meet the needs of users in terms of innovation, and at the same time can bring more reasonable benefits to both parties.

In terms of platform profitability, the GRE platform charges a certain handling fee for each risk transaction, and the handling fee is paid through RISK. RISK is the token (Token) of GRE, based on the Ethereum smart contract, and complies with the ERC20 standard. In the early stage, GRE will drop a certain amount of RISK to users through airdrops.

From the perspective of insurance, GRE was launched in the early stage of the project, that is, from February to April, for digital currency investors.andand"Currency Price Fluctuation Risk", attracting the first users. Paul Qi said that as of June 21, the number of contracts for these two types of insurance was 659, the total number of transactions was 70 million, and the total number of entrustments was more than 200 million; the follow-up GRE will design more types of insurance around digital currency , such as account security insurance, exchange hacking risk, mining pool and mine hacking risk, etc.

In addition to the insurance products around the digital currency, GRE also participates in the market of some traditional insurance industries, such as directly putting the insurance products of some insurance companies on the blockchain. At present, GRE has reached a cooperation with AXA, the largest insurance group in Europe, and will launch agro-meteorological index insurance for Southeast Asia.

According to reports, GRE has launched a mobile app with 20,000-30,000 active users. Regarding future plans, Paul Qi said that in 2018 Q3, the Alpha version (internal test version) will be developed, providing API & SDK, security audit, and GRE trial run. 2018 Q4, completed basic RDHI (Reference Database of Hazard Identification risk event library) content production, KYC-related development, security audit, completed the migration of the public chain, and officially launched the GRE primary market. Paul Qi also said that in the future, GRE will attract other teams to make corresponding DApps for different scenarios on the GRE platform.

I'm Qi Ming from Odaily. To explore the real blockchain, please add WeChat qingmoruoshui for project communication and breaking news. Please note your name, company, and position. For reprinting/content cooperation/reporting, please contact report@odaily.com; illegal reprinting must be punished by law.

I'm Qi Ming from Odaily. To explore the real blockchain, please add WeChat qingmoruoshui for project communication and breaking news. Please note your name, company, and position. For reprinting/content cooperation/reporting, please contact report@odaily.com; illegal reprinting must be punished by law.