ArmorFinance (ARMOR)

Basics

• Started in / Announced on: 24-1-2021
• Mainnet release:
• Based in:
• From their announcement (24-1-2021):

"Armor is a smart insurance aggregator for DeFi, built on trustless and decentralized financial infrastructure."

• From Week in Ethereum (25-1-2021):

"Buy Nexus Mutual coverage without having to doxx yourself (KYC), plus token rewards for users."

History

• From this insurance deep dive (3-2021):

"To overcome the limitation of KYC, Yearn Finance created yInsure where users can buy Nexus Mutual’s covers without doing KYC. yInsure was supposed to be taken over by Safe Protocol. However, due to some infighting between the founder, Alan and a prominent community member, Azeem, the project was canceled. Alan went on to release Cover Protocol, and Azeem took over the yInsure product and released Armor protocol."

Token

Token Allocation

• From their announcement (24-1-2021):

"1 billion ARMOR have been minted at genesis and will become accessible over the course of 2 years. The initial two year allocation is as follows:

65.00% to Armor community members 650,000,000 ARMOR

• 36.5% Community DAO Treasury with 2-year vesting
• 14.25% reserved for participants in the 24-week launch distribution event
• 14.25% reserved for strategic backers to enhance the position and longevity of Armor protocol within the Ethereum ecosystem with 2-year vesting

35.00% to Armor team members with 2-year vesting 350,000,000 ARMOR

• 16.266% to future team and contributors
• 18.044% to seed team
• 0.69% to advisors

Specific details with respect to tokenomics may be reviewed here.

The 2-year vesting is based on Aave’s model and will look something like this:

• 80% of ARMOR is locked at launch
• 60% of ARMOR is locked after 6 months from launch
• 40% of ARMOR is locked after 12 months from launch
• 20% of ARMOR is locked after 18 months from launch
• 0% of ARMOR is locked after 24 months from launch

All vested tokens, whether for DAO treasury, strategic backers or team members will have tokens locked up on an identical schedule. Note: There is no pre-mine. Team will NOT farm ARMOR as the goal is to sufficiently decentralize the protocol and give the community full reward opportunities."

Saying there is no pre-mine seems debatable, since all tokens have been minted at genesis, which usually is meant by a pre-mine.

Technology

• Whitepaper can be found [insert here].
• Code can be viewed here.
• Built on: Ethereum

How it works

• From their announcement (24-1-2021):

"Armor’s V1 Product Suite provides Pay as You Go and Only Pay What You Owe coverage for user funds across various protocols.

Users may cover their assets against smart contract risks across popular protocols such as Uniswap, Sushiswap, AAVE, Maker, Compound, Curve, Synthetix, Yearn, RenVM, Balancer and more. Soon custodial and centralized exchange asset coverage will be made available too.

Armor tracks exact amounts of user funds as they dynamically move across various protocols, keeping up with the rapid pace and movement of the modern DeFi investor, and bills by the second using a streamed payment system. The result is minimized costs and maximized flexibility."

• From Yield Farmer (7-2-2021):

"Armor’s arNFTs are optimized and wrapped versions of Nexus Mutual coverage. The arNFT staking pool farm lets you stake arNFTs, i.e. selling coverage and earning yield via Armor’s Smart Cover System and Shield Vaults."

Other Details

Claims

• From this insurance deep dive (3-2021):

"After a user files a claim, a review process will be triggered and submitted to Nexus Mutual for consideration. Armor token holders will also participate in Nexus Mutual’s process for claim approvals and payouts. If a payout is confirmed, the amount will be sent to Armor’s payout treasury before being distributed to the affected users."

Their Other Projects

• From this insurance deep dive (3-2021):

Armor protocol has four main products: arNXM, arNFT, arCORE, and arSHIELD.

arNXM

• From their announcement (24-1-2021):

"Armor also introduces arNXM, which is the yield bearing token for the arNXM vault. arNXM can be traded freely with incentivized liquid markets, as a complete replacement for wNXM which also accrues staking rewards realized by a steady increase in value of arNXM through its swap rate with the vault."

Governance

ArmorDAO

• From their announcement (24-1-2021):

"To maintain future compatibility and ensure the accommodation of interface changes, it is necessary to launch the contracts with proxies. The proxies are controlled with a new hybrid system. There is a timelock owned contract which controls everything with two owners: a team multisig and a full DAO (functional and accessible at launch through direct contract interactions, user-friendly interface provided at a later date). Each can delete proposals from the other. This allows us to launch with and maintain full agility while ensuring token holders can influence and control the protocol from day one. This enables shared community ownership for Armor as publicly-owned and self-sustainable infrastructure with a flexible and agile governance system.

Initial governance parameters

• 0.1% of ARMOR total supply to submit a governance proposal
• 4% of ARMOR supply required to vote ’yes’ to reach quorum
• 7 day voting period
• 2 day timelock delay on execution

There is a 12–24 week governance grace period in which activities requiring fast adjustment to feedback and insights are accommodated. Detailed on functions and governance responsibilities may be reviewed here.

Treasury

• From their announcement (24-1-2021):

"36.5% will be reserved for the DAO treasury which can be used by the community to support the long-term development of the ecosystem, for further product growth programs and to ensure the Armor protocol grows sustainably long term. The following allocations are suggested at launch:

• 1% — bug bounties
• 6% — educational programs
• 12% — development grants

After 30 days from Sunday 24 Jan 2021, governance will reach its vesting cliff and Armor governance will control all ARMOR vested to the Armor treasury. At this point, governance can vote to allocate ARMOR towards grants, strategic partnerships, governance initiatives, additional reward pools, and other programs. ARMOR holders may also vote to add more pools with the upcoming Snapshot.page off-chain token governance system."

Roadmap

• Can be found [Insert link here].

Audits

• Bug bounty program can be found here (24-1-2021).
• From Week in Ethereum (8-2-2021):

"ArmorFi massive bug bounty pays off as Alexander Schlindwein found a vulnerability and got a (mostly vested) 7 figure payout."

• Score of 74% on DeFi Safety (13-5-2021): "There have been 2 audits that have been performed on this protocol, with the earliest being released on the 16th of October, 2020. Armor.fi was released on the 20th of January, 2021." And on Access Controls: "The development team owns a team multisig. All contracts are clearly labelled as behind a proxie --> 30% The type of ownership is team MultiSig with TimeLock --> 30% The capabilities for change are implied as fully upgradable --> 10% 30+30+10=70%. There is no documentation indicating any pause control testing having been done on this platform." With the comment: "Weak docs and test. Great bug bounty and audits. The Access controls were tuff to find but good info was there."

Competition

• Nexus Mutual. From their announcement (24-1-2021):

"Armor’s coverage is underwritten by Nexus Mutual’s blockchain-based insurance alternative, with added features:

1. Permissionless access without sign-up requirements
2. Pay as you go coverage across various protocols
3. Flexible amount / duration coverage, only pay what you owe"

Team, Funding, Partnerships, etc.

Team

• Full team can be found [here].
• Azeem; ex-co-founder

Funding

• From their blog (31-1-2021):

"[We] announce that Collider Ventures, Delphi Ventures, Divergence Ventures, DeFiance Capital, Alameda Research, 1kx, The LAO, Blocksync and Bering Waters Ventures have joined Armor as strategic investors."

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