What is Third Wall?
Instead of relying on a centralized institution or a set of voters, Third Wall uses smart contracts to hold underwriter capital and pay out claims.
We plan to launch two different architectures (“Optionality” and “Automated Claims”), each of which may be more suited for protecting different protocols. We will start by launching “Optionality” and later launch “Automated Claims” based on market demand.
Both architectures use a common base layer. In both, there is one pool for each coverage policy. Underwriters deposit capital in the pool and policyholders pay premiums to the pool. Here is one example with USDC as the underwriting asset:
At expiration, underwriters can withdraw premiums as well as their underwriting capital if it hasn’t been claimed by policyholders in the event of a hack. For more details-check out our Optionality and Automated Claims architecture pages.
Last modified 1yr ago