xycloo Labs built Soroban Insurance, a decentralized insurance protocol for Soroban smart contracts that uses Reflector oracle price feeds. The protocol allows users to purchase policies protecting against asset price movements over defined periods, with liquidity providers earning premiums while covering potential claims.
Soroban Insurance is a DeFi protocol developed by xycloo Labs for the Reflector challenge, enabling users to purchase insurance policies against specified asset price movements within predefined timeframes. The protocol operates as a liquidity pool system with two participant types: policyholders who pay premiums for coverage, and liquidity providers who deposit funds to cover claims and earn premium fees. The system uses Reflector's decentralized oracle to verify price conditions and trigger payouts. Key features include period-based contract management, dynamic benefit calculations tied to premium amounts and time remaining in periods, and strict liquidity requirements to ensure all potential claims can be satisfied. The smart contracts separate principal liquidity from earned rewards, allowing LPs to withdraw rewards immediately while principal remains locked until period completion.
