Zignaly and Alternative Asset Classes
Zignaly is a social investment digital platform that provides a wide variety of crypto trading solutions for all types of traders. It aims to make alternative asset classes more accessible by delivering cutting-edge wealth management services so that traders can have their portfolios managed by professionals.
Alternative assets are believed to possess great potential. However, it may seem that only the tech gurus and professionals have the required knowledge and background to operate efficiently in the market and generate profits. It is where Zignaly services are necessary, which allows new traders to capitalize on their trading strategies provided by experienced traders. Beginners can invest in a professional trader’s fund that is actively managed by experienced traders. Since the meteoric growth of more than $700 million in trade volume in the last two months, Zignaly is fully ready to expand its initial version 1.0 of the social investment platform. The developers are attempting to make trading in crypto assets more accessible by launching Zignaly native token ZIG, which will empower all NFT-based insurance protocols on the platform along with other use cases discussed extensively below.
ZIG – a platform-centric ERC-20 token
ZIG is an ERC 20 token that is a gateway to the Zignaly platform. It is used to offer Zignaly services to its users, such as the NFT-based Insurance protocol. With the introduction of this platform-centric crypto, Zignaly can easily reach its users and generate value for them through insurance. It also gives its token holders additional services and features, including platform discounts, loyalty programs, and governance roles.
ZIG empowers the ecosystem by allowing token holders to buy and sell other cryptocurrencies using ZIG and also pay for services and success fees, get trading fee cashback, participate in Vault, and many more. It also allows users to trade with the help of external signal providers and use trading terminals to establish successful trading strategies with the help of the ZIG insurance protocol token.
ZIG Integration with Zignaly Platform
Here are the different ways ZIG will be integrated with the Zignaly ecosystem –
- Insurance NFTs – The primary function of ZIG is to operate as a medium of exchange for the platform’s insurance contracts. Zignaly users can claim their policy coverages and purchase insurance NFTs in ZIG.
- Governance – ZIG token holders will be allowed to vote on the key platform features and updates by acting as stakeholders in the unique Zignaly governance structure. In addition to getting early access to newly launched features, they will have voting rights on the upcoming platform updates and future plans.
- Discounts – The ZIG token will be used to pay for various services offered by Zignaly, such as additional insurance fees, Profit-Sharing services, potential trade commission rebates, and many more.
- Loyalty Programs – As the Zignaly ecosystem introduces more and more NFTs, token holders will get the first access to all the limited-edition NFTs they plan to release.
The industry’s first NFT-based insurance protocol:
The concept of NFT has become a common buzzword in the daily news, including “Everyday – The First 5000 Days”. NFT art pieces selling for $69 million on 11th March have made big headlines, making NFTs one of the latest trends among crypto investors and enthusiasts.
Simply put, NFTs or non-fungible tokens are unique and verifiable assets that are easily traded. Unlike cryptocurrencies, which are identical tokens exchanged at equal values, NFTs are different pieces of attractive art; hence, no two NFTs can be the same.
As the Zignaly review indicates, the platform employs this concept of non-fungible or unique utility as the structure for its insurance protocol and also uses it as an instrument to mitigate risk. Traditional traders and investors generally opt for secure investment products like ETFs, equities, or index funds. Therefore, Zignaly insurance protocol is the first risk management instrument offering additional protection to its users against market volatility. It also helps risk-averse users consider alternative asset-class investments instead of conventional financial products. Zignaly investors can freely trade cryptocurrencies with insurance between 10% to 100% of the funds invested through the Profit-Sharing feature on Zignaly.
The protocol essentially works how any other asset insurance would but in a better way. Traditional asset insurance protocols are inefficient because of the excessive paperwork and red-tapism in all transactions. Nevertheless, in the case of insurance, most of the manual paperwork is eliminated, which means business insurance costs are reduced with the use of smart contracts and blockchain technology.
The NFT based Insurance Protocol is designed with 4 layers –
The first player is ZIG which acts as a medium of exchange across the Zignaly landscape. The second layer is NFTs, the tracking system and digital representation of the smart contract insurance system. The third layer is the Drawback Percentage, a dynamic formula that helps to decide when a particular insurance policy must be triggered. The fourth layer is the Fund Value Formula, which ensures that the insurance fund’s exposure does not ever go beyond the total value of the active insurance policies at a point in time. These four layers work together to ensure that the funds never over-extend themselves and can take additional risks while protecting signal users through subsequent liquidation mass and mass volatility. Even under normal conditions, the insurance protocol can operate to hedge against price movements and minimize losses.