Shield finance

An interview with Moonboots Capital

Written By Moonboots Capital

Moonboots is a value adding community based Venture Capital organization.

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An interview with Shield Finance who are innovating a user friendly cross chain insurance aggregation protocol to protect your assets from market volatility.

We had the opportunity to sit down with Denis Gorbachev, the CEO of Shield Finance, who is engineering a cross chain aggregation engine for insuring decentralized crypto assets.  The crypto markets can be tumultuous.  Shield Finance allows users to protect their assets from major market crashes due to black swan events (hacks, exploits, rug pulls, sell-offs).

Nothing as inclusive has been done to date with an extensive cross chain ecosystem.  Shield Finance has been incubated by Master Ventures and we were honored to have an opportunity to make an early stage investment.  Shield is definitely one to watch over the coming weeks and months.

 A great video breakdown of Shield Finance by DuRTY Crypto.  Subscribe to them here

 

Q: Can you tell us a little bit about yourself and how you found digital assets?

Hi! I’m the CEO of Shield Finance. My responsibilities:
* Manage the team
* Design the technical architecture
* Write the code (critical parts)

I’m a software developer with 16+ years of experience (coding since I was 14 years old). I’ve built numerous startups, including Pintask (a task tracker), Spire (an API integration hub), Moonbase (a derivatives exchange). I’ve also worked as a CTO for Rent Scene (a YCombinator Fellowship company).

Got my first Bitcoin in 2014, converted 95% of my net worth into crypto in 2017, founded Shield Finance in 2021.


Q: What influenced your decision to build Shield Finance? When did you realize there was a need?

I wanted to help my friends achieve high returns without the risk.

My friends wanted to capitalize on yield farming, but they didn’t want to get hacked / rugged / scammed. So I pointed them to multiple insurance providers. But they kept asking what’s the best one for their use case. So I decided to build an insurance aggregator that gives this advice to everyone, for free.

 

Q: How would you explain Shield Finance to a friend who may not have had much exposure to digital assets?

Digital assets are associated with certain risks: hacks, rug-pulls, exploits. Because of these risks users can lose their money. To prevent losses, users can buy insurance.

Shield is 1inch for insurance. It’s an aggregator — it shows you packages from multiple insurance providers. Since we aggregate multiple providers, you will be able to find the best insurance for your use case.

Scenario:
* You open the Shield app
* You select the token that you have
* You input the amount of tokens that you have
* You tap “Search”
* We show you the insurance packages from various providers (Nexus Mutual, Cover Protocol, Tidal Finance and others)
* You select the package
* We generate the transaction
* You buy the package

We will take a fee for the service. 50% of the fees will be used to buy & burn $SHLD token, permanently reducing the supply.


Q: What types of events does Shield Finance give protection for?

There are two broad categories: hacks & dump.

Hacks are covered by “regular” insurance providers: Nexus Mutual, Cover Protocol, Bridge Mutual, etc.

Dumps (~ price crashes) are covered by options providers: Hegic, Opyn, Opium, etc.


Q: We haven’t seen a cross chain defi insurance ecosystem. What inspired you to lean into cross chain operability?

Nowadays, investors & traders use multiple blockchains, so we decided to operate across multiple blockchains to serve our users better.


Q: Which chains are actually supported? Why did you choose them and will the protocol add more in the future?

Ethereum, Binance Smart Chain, Polkadot, Solana — these are the most popular, so we will start with them. We are open to supporting other chains as well. If a new blockchain becomes popular, we will add support for it.


Q: How customizable are the insurance packages? What does the user journey look like for buying insurance?

We’ll provide the same level of customization as our insurance providers.

Besides that, we’ll aggregate the packages from the insurance providers that operate under the same model (e.g. if a new insurance provider offers packages under the same model as Cover Protocol (the dual token model), then we’ll aggregate the packages from a new insurance provider & Cover Protocol).

Scenario for buying insurance is the following:
* You open the Shield app
* You select the token that you have
* You input the amount of tokens that you have
* You tap “Search”
* We show you the insurance packages from various providers (Nexus Mutual, Cover Protocol, Tidal Finance and others)
* You select the package
* We generate the transaction
* You buy the package


Q: Are there limitations in terms of which tokens can be insured?

We will support all coins & tokens that our insurance providers will support. I believe that in future we’ll see support for every asset on the market. Of course, the price of insurance for an unknown altcoin will be higher than for something like AAVE for example.

By the way, our $SHLD token will also be insured.


Q: Shield Finance is a user governed ecosystem, so which types of decisions can token holders expect to be involved in?

We’ll use the same governance process as Uniswap. Every $SHLD holder will be able to participate.

The main governance decisions are: changing fees & voting on insurance providers.


Q: How does the APY work for staking the $SHLD tokens?

You’ll send $SHLD to a staking contract, locking them for a minimum of 1 month. After the lock period ends, you’ll withdraw initial $SHLD + added interest (30% APY). We’ll consider implementing extra rewards for longer lock periods.


Q: You were incubated by Master Ventures which are a Moon Boots favorite. Tell us about that experience. How did that incubation work?

The MV team is fantastic – very experienced, very well-connected in the industry. They provided important advice & made introductions that proved to be pivotal for Shield Finance. Their own success with PAID token speaks for itself.

5/5 would recommend.


Q: Which Defi insurance providers have you created partnerships with?

We’re planning to integrate the following insurance providers:

* Nexus Mutual
* Cover Protocol
* Tidal Finance
* Bridge Mutual
* … others that are less known currently, but may grow in future

We already have a partnership with Bridge Mutual. Other partnerships will come, too.

Also, we’re in talks with SushiSwap (not official yet), PlasmaPay and some other exchanges.


Q: How will the partnerships and integrations with DEXes’s work? Have you had some early stage conversations?

The integration will look like a button: “Buy insurance for this token”.

* When a user clicks the button, we will display insurance packages.
* When the user chooses a package, we will execute his purchase.
Our button will be displayed within exchange / wallet / farm interfaces. The user won’t need to leave the interface. The user will see the button when he needs it the most — when he is fearful about his purchase of this token.


Q: If an event happens for which the user is covered, how would they make a claim?

They will go through the claim process as outlined by the insurance provider (the one whom they bought the insurance from using our app).

 

Q: You recently announced a partnership with Parsiq. How will you work together?

Their clients will be able to purchase insurance for their holdings (e.g. insure against the USDT / USDC insolvency).

 

Q: If you could deliver one message to everyone in the world as it relates to your mission, what might that be?

Buy insurance to protect your investment from hacks & dumps.

 

Q: Where do you see the future of Decentralized Finance? Any bold predictions?

Blockchains will be used for all financial operations – it’s obvious to anyone who has tried using them.

 

Q: Is there anything else you would like to share with us?

Our IDO will be happening soon on Ignition platform.

Subscribe to our Telegram group and Twitter account to get notified.

 

 

About Shield Finance

Visit Shield Finance on the web here

Make sure to join their telegram here

Find them on Twitter here

Stay up to date via Medium here

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