Third Wall

Automated Claims

Our “Automated Claims” architecture will use smart contracts to check if certain conditions have been met to validate a claim, then automatically transfer funds from underwriters to policyholders when necessary.
We will be working with DeFi protocols to craft simple and secure claim-checkers contracts that protect against the specific risks their communities are concerned about. Since all of this happens on-chain, the protocol is completely decentralized and objective, and no one can intervene even if they wanted to.
For example, we can cover Compound’s USDC deposits by checking the redemption ratio of cUSDC. If there are fewer USDC backing each cUSDC, that indicates the cUSDC market has been hacked and USDC has been drained from Compound.
Another example -- we can provide coverage against DAI depegging from a baseline by checking a Uniswap TWAP (Oracle to capture data) to determine whether DAI has lost value relative to the baseline (i.e. by looking if DAI trades for less than 0.9 USDC).
If an exploit occurs, policyholders can call a claim() function which automatically checks on the state of the covered protocol and pays out funds if necessary.