The Insrt protocol serves as the basis for the dApp Insrt. With Insrt, users are offered a lootbox game on a chain where they can win rewards from various creators and communities for moonshots at any time. Rewards can be anything from tokens to digital art or even physical items! Every time you use the app, you also win $MINT tokens.
Insrt uses a random number generated to provide results to players. For each game attempt, there are two types of variance - the chance of winning a prize and the chance of winning X amount of $MINT. The prize can be thought of as the "legendary" PFP, and all levels below can be thought of as different forms of the rarity of the $MINT distribution.
The odds are determined and set by the depositors. Minters can estimate odds before minting begins. The system uses Chainlink VRF to ensure randomness in determining the results of minting attempts - all of which is provably fair to users and can be verified on the chain.
ShardVaults are Insrt's first product paying yield to users for becoming partial owners of Bluechip NFT. Vaults democratize Bluechip NFT ownership by offering users a low price of entry to their favorite collections. In addition, bluechips are placed in NFT's financial infrastructure to generate revenue for vault members.
Users deposit ETH into the ShardVault until they reach the required amount of funding.
In exchange for ETH, users are issued a unique NFT (Shard). The Shard represents the user's participation in ShardVault and ownership of the underlying assets of the vault. It also represents the user's right to the income accumulated by the vault.
Once the vault reaches its capacity, it acquires an NFT from a predetermined collection of blue chips.
The underlying NFT is then pledged using a lending protocol, and the borrowed funds are placed in high-yield strategies that capture the difference between the interest rate on borrowing and the investment yield.
ShardVault automatically manages the loan position by monitoring risk, making loan payments, and borrowing more when necessary to prevent liquidation but maximize returns to users.
Users can periodically claim their yield from ShardVault as it accumulates.
Shard owners can propose a vote to close the vault and sell NFT if, for example, the price of the blue chip NFT rises significantly. If the vote passes, the vault will sell the NFT and distribute all profits to the shard owners.
ShardVaults can be created for any collection or even a basket of collections. Each vault can be represented by any number of shards.
