We are extremely happy and excited to be partnering with Solace, a decentralized insurance protocol offering Wallet Coverage on Polygon and Ethereum, to streamline their underwriting pool management process across multiple different chains via the Celer Inter-chain Message Framework!
Solace will be using the Celer Inter-chain Message (IM) SDK, to aggregate their underwriting capacity data across different chains with additional plans to move into the risk assessment process. Eventually aiming to design a single unit infrastructure for Solace across chains.
For the initial implementation of the Celer IM SDK, Solace will be using it to aggregate the sums of all underwriting pools within each chain with more gas efficiency. Specifically, what will change is how Solace will update the CoverageDataProvider smart contract. Previously, to update the maxCover() function of the smart contract (i.e. the function that returns total underwriting capacity), each individual chain required an update. If the underwriting capacity was updated to a new value on one chain, it required several calls to the function in order to update the correct maxCover() for each chain.
Consider This Example:
Let’s say there is an Ethereum underwriting pool that has $1 million of liquidity. The maxCover() function returns $1 million.
Now, let’s add the Polygon underwriting pool. This pool has $1 million of liquidity as well. In order to update the maxCover() and have the same correct values on both chains, the following steps would need to be taken:
- Update Polygon’s pool value to CoverageDataProvider for Polygon
- Add Ethereum’s pool value to CoverageDataProvider for Polygon
- Add Polygon’s pool value to CoverageDataProvider for Ethereum
In this example, there are only two underwriting pools, whereas Solace already has three between Ethereum, Polygon, and Aurora, with plans to grow on and expand to more chains.
How Solace Underwriting Capacity works with Celer IM
Solace utilizes Celer’s IM interoperability protocol to update their underwriting information across different chains. They will be utilizing three core pieces with the new Celer infrastructure: the wrapper contract, the Message Bus Contract, and the State Guardian Network (SGN).
Let’s break it down a bit more:
- CoverageDataProviderWrapper is called to either set() or remove() an underwriting capacity value via admin or data script.
- CoverageDataProviderWrapper updates the CoverageDataProvider contract with either its set() or remove() functions.
- The operation is encoded into a message and sends that to the Message Bus Contract.
- The Message Bus Contract sends the message to the SGN. Once the SGN validates the message, it’s sent to the Executor Service.
- The Executor Service fetches the message.
- The Executor Service calls the destination chain’s Message Bus Contract and hands over the fetched message.
- The Message Bus Contract calls the destination chain’s CoverageDataProviderWrapper and calls the executeMessage() function.
- CoverageDataProviderWrapper decodes the message and calls the destination chain’s CoverageDataProvider to execute the operation.
The Celer Inter-chain Message Framework transforms how multi-blockchain dApps are built and used by connecting users, dApps, and chains in a frictionless flow. Developers can build inter-chain-native dApps using the Celer Inter-chain Message SDK for efficient liquidity utilization, coherent application logic, and shared states. Users of Celer-enabled dApps will enjoy the benefits of a diverse multi-blockchain ecosystem with the simplicity of a single-transaction UX from a single chain.
Solace is a decentralized insurance protocol that offers Solace Wallet Coverage, the first and only DeFi insurance product that allows a user to insure positions for over 180 DeFi protocols across Ethereum and Polygon with one policy. The coverage is personalized to your wallet’s portfolio, even if you change DeFi positions daily. Token holders can stake $SOLACE to earn emissions of policy sales and token distribution. Because Solace owns its underwriting capital, payouts are made by Solace, and stakers are never liquidated during a claim.
About Celer Network
Celer is a blockchain interoperability protocol enabling a one-click user experience accessing tokens, DeFi, GameFi, NFTs, governance, privacy solutions and more across multiple chains. Developers can build inter-chain-native dApps using the Celer Inter-chain Message SDK to gain access to efficient liquidity utilization, coherent application logic, and shared states. Users of Celer-enabled dApps will enjoy the benefits of a diverse multi-blockchain ecosystem with the simplicity of a single-transaction UX, all from a single chain.
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