# Protect.it 🛡️

## What is the app?

A **decentralized, community-governed dApp** on **Flow blockchain** that allows users to insure their tokens against smart contract hacks using a **prediction market** mechanism. The free market rules the insurance prices and premiums. This product offers new trading, arbitraging, and foremost insurance opportunities.

In the backend, by buying a contract or betting against a protocol hack users buy **for** or **against** the likelihood that a given protocol (e.g., **Ankr**, **KittyPunch**) will be hacked during a specific coverage period (e.g., monthly).

If a hack is confirmed, the “for” side (those who predicted the hack) is compensated using funds from the “against” side.

## 🔍 Use Cases & examples :

_Example 1 :_ **Ankr** DAO, TWAP’s 5M$ worth of insurance (buying “yes hack” at average price of 0.05 cent per token) and a contract duration of 1 year. If a hack occurs on the core protocol, resolved to “yes hack” and covers up to 100M$ of losses

_Example 2 :_ An insider knows that **KittyPunch** succesfully passed a smart contract audit They take a heavy position *agains* the event “**KittyPunch** will be hacked.”, allowing prediction markets to have an edge and reach equilibrium.

## Try it out :
https://protect-it.vercel.app