Integration of Avata with the Polkadot Ecosystem
Beneficiary:Introduction
We at Avata, a leading innovator in insuring digital and tokenized real-world assets, are submitting a proposal to secure a grant for integrating our platform with the Polkadot ecosystem. Founded by Sung Feng and Joachim, Avata has become instrumental in bridging insurance carriers with merchants via a plug-and-play platform, aiming to safeguard the digital economy. Our mission leverages novel risk mitigation strategies pertinent to both Web2 and Web3 sectors.
Connection to Polkadot Community
Joachim, our co-founder, boasts profound connections within the Polkadot community, having fostered key relationships over time. A meaningful interaction with Strindbergman from ChaosDAO during the Paris Blockchain Week has reinforced our commitment to utilize Polkadot’s distinct capabilities, such as scalability and seamless interfacing with parachains, aligning with client demands and our strategic objectives. In October 2023 we engaged with Parity Technologies, signing an NDA/LOI to deploy on Polkadot. At that time our platform was not fully developed and ready for deployment. This is why we are presenting our proposal now, as our platform is live with merchants and ready for delpoyment.
Partnering with Polkadot
Our partnership with Polkadot is set to enhance the blockchain ecosystem by bringing onboard significant players from various industries who’s already collaborating with Avata and we are live with, each contributing substantial digital revenue streams that can transition to on-chain transactions.
Here are some highlights of our key partners and the economic impact they are poised to bring:
Vaultik: protects and connects luxury goods through digital vaults. With embedded insurance on Vaultik has a projected annual digital value of $300M and over 60+ merchants.
Valentino: A luxury brand with a strong digital presence, Valentino's online sales contribute approximately $500 million annually.
Bulgari: A renowned Italian luxury brand known for its exquisite jewelry, watches, fragrances, accessories, and leather goods. $100M+ in DPP sales.
Fura Gems: Global mining pioneers of colored gemstones. Supplying Cartier, Bulgari, Rolex and more with gemstones. $80M+ in DPP sales
AIG Esport insurance: Working already with the most prominent esports teams, organisers, federations and platforms to facilitate esport, cancellation and event liability insurance. Combined value of over $600M+.
GamerPay: A digital marketplace platform for the gaming industry, GamerPay handles around 215 million in trades annually.
Vaultn: Smart distribution platform enables direct, secure, and on-demand transactions for game keys and activations. Offers opt-in insurance from Indie to AAA with clients like Bethesda, Fanatical, Thunderful Group, Maximum Games, Nuuvem, etc. Combined value of $1B+.
Partnership deals with EON, Arianee and Trust Place with clients like Chanel, Dior and Nike.
Our platform boasts over 100 prospects and live clients representing the most innovative marketplaces, gaming-skin trading platforms, luxury brands, and the NFT industry. These clients already account for several millions of transactions on an annual basis.
Introduction of DPP Providers to the Polkadot Ecosystem
Avata stands at the forefront of incorporating Digital Product Passport (DPP) providers into the blockchain arena. These DPPs, set to be promoted by upcoming EU regulations, are designed to enhance transparency and management throughout a product’s lifecycle. They act as digital twins, detailing everything from production to disposal, facilitating improved regulatory adherence, sustainability, and management.
We are thrilled to share that Avata has already garnered commitments from numerous DPP providers ready to integrate with the Polkadot parachain network. This move will not only extend the applications of DPPs in blockchain but also position both Avata and Polkadot at the cutting edge of regulatory evolution.
Market Dynamics and Security Insights
The digital asset market is currently undergoing explosive growth, highlighted by an increase in Total Value Locked (TVL) in DeFi protocols and the proliferation of tokenized assets. This growth trajectory is tempered by substantial security challenges: A notable $10 billion in assets were compromised due to security breaches last year, highlighting the urgent need for comprehensive insurance solutions. The market for digital and tokenized assets is expected to burgeon to over $24 trillion by 2027, underlining the vast potential and the essential need for robust protective mechanisms.
Why Polkadot is the Ideal Platform for DPP Integration
Polkadot’s architecture, known for its scalability and interoperability, provides an optimal foundation for the deployment of DPPs across various sectors. By leveraging Polkadot, Avata aims to:
- Enhance Transparency: DPPs on blockchain will offer unmatched insight into product lifecycles, enabling both consumers and businesses to make more informed decisions.
- Boost Sustainability: DPPs will facilitate greener choices by providing detailed sustainability and environmental impact data.
- Facilitate Compliance: The evolving EU regulations will be more easily navigable through blockchain-enabled DPPs, simplifying adaptation for businesses.
Anticipated Outcomes with Polkadot Integration
Our integration is set to yield substantial advancements, including:
- Targeted Insurance Solutions: Addressing the dire security concerns manifested in the theft of over $10 billion in assets.
- Market Expansion: Responding to the market’s potential expansion to $24 trillion by 2027, providing a secure foundation for digital asset transactions.
- Innovative Insurance Products: Merging our insurance offerings with DPPs to create new, customized products tailored for the digital and tokenized asset market.
- Wider Market Access: Bridging digital assets with real-world applications, broadening our audience and market share.
- Regulatory Leadership: Establishing benchmarks for regulatory compliance in the blockchain realm, particularly with the impending EU DPP regulations.
- Annual Projections: We are projecting to insure over 70 million DOTS annually in terms of insurance policies and claim payouts, with plans to continue growing the business moving forward
Comprehensive Plug and Play Solution Offered by Avata
Our product is multifaceted, addressing the needs of various stakeholders through different portals:
- Avata Admin Portal: A many-to-many switchboard with a dynamic pricing engine, setup configuration for merchant-partner relations, and data aggregation for transaction oversight.
- Merchant Portal: Offers performance analytics, API or SDK integration, and pricing options, including a white-label portal for claim filings.
- Customer Portal: Web2 and Web3 user-friendly interface, with policy management and cross-sell opportunities.
- Partner Portal: Provides detailed transaction reports, A/B testing for pricing, and a comprehensive market risk overview.
Closing Thoughts
Avata's clear vision, combined with Polkadot's advanced technology and our preparation for the upcoming EU regulations on DPPs, puts us in a strong position to make a significant impact on the Polkadot ecosystem and the wider digital economy. We're excited about this transformative journey and hope you'll join us in creating a more transparent, sustainable, and compliant digital landscape.
Read more about Avata — avata.gg
Breakdown of Grant Budget — https://docs.google.com/spreadsheets/d/e/2PACX-1vQPzGLnjfFhVgc8mmhI3vojuKRQLK-E5R2l1UIGXCovxyKg7BNgYJt9UvPlp_894g/pubhtml
Comments (6)
Proposal Passed
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Nay
Aye (25)0.0 DOT
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Nay (59)0.0 DOT
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ChaosDAO would like to provide the following feedback from our community. We offer this feedback voluntarily in the spirit of OpenGov, in order to help teams improve their proposals so we can all build the network together.
Some members suggested teams should launch on Polkadot because they want to, not because Treasury will pay for them to do so
Some members argued that there are not yet enough assets/volume to require an insurance product
Some members pointed out that it is currently difficult for teams to raise funding to launch on Polkadot, and it's not necessarily a bad thing to do some "pump priming"
ChaosDAO votes as a collective based on the results of our anonymous internal voting procedures. Our members are not required to provide any feedback about why they have voted in a particular direction. Similarly, to respect our members' right to anonymity, we will not be sharing names of individuals who have chosen to voluntarily provide feedback.
We are currently making an extended comment regarding Avata. We are aware about the advantages and often the need of insuring digital assets as well as real assets (possibly tokenized through RWA tokenization) but this proposal seems premature considering the state of native assets and of the assets currently tokenized on Polkadot. Moreover, we hold the believe that most if not all the insurance products currently available for digital assets across all chains are often insufficient for the risks that this emergent technology has at this moment. Expanding on these ideas, Polkadot native assets, tokenized assets and exchanges currently have not grown completely and it seems like the market is not big enough for mature insurance products to make an entry to the ecosystem. Meaning, there are still too few clients. For that reason, we insisted that products should be developed first in order to consider insurance as a priority that has to be funded. Second, the payments for parachains slot leases is usually not paid by the treasury and it shouldn't be as this is not considered a public good because it concerns a private company. Even with tokenization potential. A 125K claim capital seems small for whatever projects and it's also a tough sell to have such costs also covered by the treasury . The operations of the potential parachain/parathread are very fuzzy at the moment. Third, all on-chain insurance products on all chains historically have had massive flaws whenever claims have been brought up. Starting from InsureX from the ICO days on Ethereum, Etherisc and more recently Unslashed Finance which, in theory existed to cover funds in case of Kyberswap hacks. As such, we are very reluctant to cover the development costs of any insurance product on Polkadot as that seems to be one of the least mature on-chain products. For those reasons we have voted NAY.