Insurance

This module provides insurance funds for derivative markets in the exchange module of the Injective Chain to use in order to support higher leverage trading. On a high level, insurance funds for each derivative market are funded by a permissionless group of underwriters who each own a proportional claim (represented through insurance fund share tokens) over the underlying assets in the insurance fund.

Messages

Let’s explore (and provide examples) the Messages that the Insurance module exports and we can use to interact with the Injective chain.

MsgCreateInsuranceFund

This Message is used to create an Insurance Fund

import { Network } from "@injectivelabs/networks";
import { toChainFormat } from "@injectivelabs/utils";
import { MsgBroadcasterWithPk } from "@injectivelabs/sdk-ts/core/tx";
import { MsgCreateInsuranceFund } from "@injectivelabs/sdk-ts/core/modules";

const injectiveAddress = "inj1...";
const privateKey = "0x...";
const amount = 5;
const fund = {
  ticker: "BTC/USDT",
  quoteDenom: "peggy0x...",
  oracleBase: "BTC",
  oracleQuote: "USDT",
  oracleType: 10, // BANDIBC
};

const msg = MsgCreateInsuranceFund.fromJSON({
  fund,
  injectiveAddress,
  deposit: {
    denom: fund.quoteDenom,
    amount: toChainFormat(amount, 6 /* 6 because USDT has 6 decimals */).toFixed(),
  },
});

const txHash = await new MsgBroadcasterWithPk({
  privateKey,
  network: Network.Testnet,
}).broadcast({
  msgs: msg,
});

console.log(txHash);

MsgRequestRedemption

This Message is used to request redemption.

import { Network } from "@injectivelabs/networks";
import { toChainFormat } from "@injectivelabs/utils";
import { MsgBroadcasterWithPk } from "@injectivelabs/sdk-ts/core/tx";
import { MsgRequestRedemption } from "@injectivelabs/sdk-ts/core/modules";

const marketId = "0x....";
const privateKey = "0x...";
const injectiveAddress = "inj1...";
const denom = "share1"; // the insurance fund denom (share{id})
const amount = toChainFormat(5).toFixed();

const msg = MsgRequestRedemption.fromJSON({
  marketId,
  injectiveAddress,
  amount: {
    denom,
    amount,
  },
});

const txHash = await new MsgBroadcasterWithPk({
  privateKey,
  network: Network.Testnet,
}).broadcast({
  msgs: msg,
});

console.log(txHash);

MsgUnderwrite

This Message is used to underwrite to an insurance fund.

import { Network } from "@injectivelabs/networks";
import { toChainFormat } from "@injectivelabs/utils";
import { MsgUnderwrite } from "@injectivelabs/sdk-ts/core/modules";
import { MsgBroadcasterWithPk } from "@injectivelabs/sdk-ts/core/tx";

const usdtDecimals = 6;
const marketId = "0x...";
const privateKey = "0x...";
const denom = "peggy0x...";
const injectiveAddress = "inj1...";
const amount = toChainFormat(5, usdtDecimals).toFixed();

const msg = MsgUnderwrite.fromJSON({
  marketId,
  injectiveAddress,
  amount: {
    denom,
    amount,
  },
});

const txHash = await new MsgBroadcasterWithPk({
  privateKey,
  network: Network.Testnet,
}).broadcast({
  msgs: msg,
});

console.log(txHash);