Injective Insurance Fund Operation Guide

The Injective Insurance Fund is now live! You can start earning rewards by reading this how-to guide to pledge insurance funds on Equinox Staking.

The Injective Insurance Fund is now live!

You can pledge insurance funds on Equinox Staking and start earning rewards by reading this how-to guide.

This guide will guide you through the concept of insurance funds and how to use the Injective Staking interface to start pledging insurance funds. Once you are familiar with these concepts and the interface, you will be able to cast USDT on Kovan and transfer USDT to the Injective chain, underwrite insurance funds, and redeem funds from insurance funds.

You can get an overview of the Injective Insurance Fund and how it works by following the link below.

After connecting your wallet, you can find FAQs about the insurance fund on the Staking operator interface.

  1. To connect your wallet

Visit the Staking page at

https : //staking.injective.network/

Injective Insurance Fund Operation Guide

Click the Metamask option and then click Sign to complete the signature request. This will allow you to access the Staking page, where you will be able to view the insurance funds and begin Staking.

Note: You can also use Ledger to connect to the Staking page.

Injective Insurance Fund Operation Guide
  1. Transferring ERC-20 USDT tokens from Kovan to the Injective chain

The insurance fund Staking allows users to underwrite their tokens to insurance funds, each of which corresponds to a derivatives market on Injective. When a user underwrites insurance for a derivatives market, he pledges tokens for that market, which in turn receives the insurance pool tokens corresponding to that market.

These pool tokens represent a proportional ownership of the insurance fund. Thus, as the insurance fund grows from the proceeds of liquidation, the insurance fund holders will also profit from the increase in the value of their token holdings.

The first step in underwriting assets on Equinox Staking is the transfer of tokens to the Injective chain. The process is very similar, as we have previously delegated to a verification node.

First, click on the “Insurance Fund” option.

Injective Insurance Fund Operation Guide

Click the Unlock button on the Staking page to approve the Peggy contract to transfer tokens.

Injective Insurance Fund Operation Guide

Metamask will open and ask you to approve the transaction. Click to confirm.

Injective Insurance Fund Operation Guide

Note: Depending on the Gas fee you choose with your transaction and the current load on the Ethernet network, your transaction may be completed quickly or you may have to wait a few minutes. If the approval process takes a long time, you may want to try refreshing the page or consider speeding up the transaction by paying a higher Gas fee.

After completing a transaction on Kovan, the Insurance Fund page will display a form where you can enter the number of ERC20 USDT tokens to be transferred to the Injective chain.

Injective Insurance Fund Operation Guide

We can notice that there is 0 USDT in the Kovan wallet at this point, so the next step is to get some free USDT on the Kovan Network.

First, go to the USDT contract address on Etherscan at https://kovan.etherscan.io/address/0x69efCB62D98f4a6ff5a0b0CFaa4AAbB122e85e08 and click on the ” Contract” tab. Next, click on “Write Contract” and connect Etherscan to your Metamask.

Injective Insurance Fund Operation Guide

Finally, select the “mint” function and click the “write” button. A pop-up window will appear in your “Metamask”. Confirming the transaction, you have successfully minted 100 Kovan USDT at your address.

Injective Insurance Fund Operation Guide

Now, go back to the Staking page and refresh the Insurance Fund page. Enter the amount of USDT to be transferred to the Injective chain in the field, click Transfer and sign the transaction.

Injective Insurance Fund Operation Guide

After confirming a transaction on Kovan, you should see a “Successful Transfer” notification at the bottom right of your screen. Your Injective Chain USDT balance should update to reflect your token transfer between networks.

Note: If your Injective Chain USDT balance does not update within a few minutes, please refresh the page.

  1. Underwriting Insurance Funds

First, select the insurance pool you want to underwrite and click the “Underwrite” button.

Injective Insurance Fund Operation Guide

Next, enter the amount to be covered to the insurance fund, click the “Underwrite” button, and then sign the transaction.

Injective Insurance Fund Operation Guide

After confirming that you have successfully underwritten to the insurance pool, the front-end information will be updated to reflect your token pool and the percentage of tokens you have in the insurance pool you just underwrote.

  1. Requesting a redemption from an insurance fund

You can request a redemption of some (or all) of the tokens in the insurance fund you are covering.

First, click the “Request Redemption” button to start the redemption process.

Injective Insurance Fund Operation Guide

Next, enter the number of tokens requested for redemption, click the “Request Redemption” button, and then sign the transaction.

Injective Insurance Fund Operation Guide

In the redemption list, you can now see your redemption requests and their completion times.

Injective Insurance Fund Operation Guide
  1. Summary

You now have a good understanding of how to participate in the Insurance Fund on Injective.

If you have further questions, please read the FAQ on the Insurance Fund page on the Stake Dashboard or join our Discord channel to talk directly with one of our team members.

About Injective Protocol

Injective Protocol is the world’s first Layer-2 derivatives DEX that enables users to trade any type of derivative, unlocking the full potential of borderless decentralized finance. and Binance, a leading cryptocurrency exchange

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/injective-insurance-fund-operation-guide/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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