What is decentralized insurance?
In centralized insurance, the funds are “pooled” into one account with an insurer who acts as a middleman. In decentralized insurance, all the funds are from the stakers, who give liquidity to the insurance, and in return, receive interest. It is similar to when you add liquidity to a Levinswap pool.
What is Opium?
Opium, based on Ethereum, is a decentralized protocol, hosted through the Polygon network. One of the main use cases of Opium is insurance.
What will be the advantages of insurance through Opium?
First, we need to differentiate between the insurance already in place on all the properties and the insurance that will be offered through Opium.
Currently, all the properties are covered by the standard insurance to protect them from real estate disasters like fire and water damage. What is not insured is your monthly rent payment.
For example, in the event of a fire, it might take three months for repairs and renovations. The renovation expenses are covered by the property insurance; but if the tenant has to relocate, they do not pay rent during this time. This means you will not receive rent for this property for those 3 months. If you opt into the insurance offered through Opium, you will continue to receive rental payments when the tenant doesn’t pay. Insurance by Opium protects your ROI.
To begin, we will offer Opium insurance on one property, 10700 Whittier, for the cost of 1% of your rent per property per month.
How do I use Opium?
To select Opium insurance there will be a link visible on the property page. Click on it and you will be redirected to Opium’s website to purchase insurance protection for your property. You can also provide liquidity to the protocol and be rewarded for it.
Opium insurance will be hosted on the Polygon network. Just as Ethereum has Layers2 like xDai, Polygon is a similar setup.
How do I use Polygon?
Changing the network can involve some small changes to your wallet. Here is how you would configure MetaMask in order to use Polygon with ease.
MetaMask
By default, MetaMask is configured only on the main Ethereum network. However, with a short and simple setup, you can connect your MetaMask wallet to the Polygon network.
- Open MetaMask
- Click on “Main Ethereum Network”, then “Custom RPC”
- Enter the following information of the Polygon network:
- Network Name: Polygon
- New RPC URL: https://rpc-mainnet.maticvigil.com/
- Chain ID: 137
- Symbol: MATIC
- Block Explorer URL: https://polygonscan.com/
- Save and connect by changing Ethereum mainnet to Polygon
Conclusion
Giving you the option to insure your investment, safeguards your rental payment when your property is faced with a disaster or vacancy. Your rental payments will continue seamlessly to arrive in your wallet.
This information is not an offer to invest in any token, Fund or other opportunity and is provided for information only. Performance results are shown net of all fees, costs, and expenses associated with the token. Should an investor choose to redeem a token through RealT or on a secondary market, other processing fees may be assessed that are not factored into the returns presented. Past performance does not guarantee future results. Returns are calculated based on the rental payments distributed throughout the year and the appreciation in value of the underlying property. The appreciation in value is based on the difference between purchase price and annual property reappraisals. Individual investor returns may vary based on the timing of their investments and redemptions.
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