ISM Protocol is a new DeFi price insurance protocol. With the concentrated explosion in the DeFi space in the second half of 2020, insurance protocol projects emerged as a critical need within DeFi, leading to a surge of various insurance projects. From the earliest ones like NXM and yinsurefx, to later projects such as COVER Protocol, its clear that insurance is an indispensable track in the DeFi ecosystem.
ISM Protocol adopts a model where both underwriter and insurer tokens are represented by tradable tokens (similar to COVER) and combines this with an "options guarantee" approach, allowing users to exercise their rights at any time during the guarantee period for price insurance.
ISM Protocol is deployed on the Huobi Eco Chain (Heco).

Understanding ISMs Insurance Model

Understanding Underwriter Tokens (Unclaim Tokens) and Insurer Tokens (Claim Tokens)
When a user stakes one unit of collateral, two tokens are generated: an Underwriter Token (Unclaim Token) and an Insurer Token (Claim Token).
For example, for ETH price insurance, assume the guaranteed price is 500 HUSD, with the guarantee expiring before January 30th. A user stakes one unit of HUSD and receives one unit each of Underwriter Token and Insurer Token.
Rights of Insurer Token Holders
Insurer Token holders can sell one unit of ETH at a price of 500 HUSD before January 30th (after January 30th, the token becomes worthless as the right expires).
Rights of Underwriter Token Holders
Underwriter Token holders can reclaim one unit of ETH or the equivalent in HUSD after January 30th.