DeFi FAQ
What is Chrysalisto DeFi?
- Chrysalisto is an IP development and consulting company specializing in continuous valuation and proof of assets for stablecoin cryptocurrencies, leveraging a proprietary Bayesian inference method. It integrates life insurance pools to back stablecoins, ensuring stability and security.
How does Chrysalisto DeFi’s Bayesian inference method work?
- Our Bayesian inference method uses advanced algorithms to analyze and continuously update the valuation and proof of assets information for stablecoin cryptocurrencies, ensuring accurate and reliable real-time data.
What recent developments have occurred involving Chrysalisto and Longevity Capital Company?
- Recently, Longevity Capital Company (LCC) internally announced relationships with GCAP and 3iQ. 3iQ has indicated a willingness to invest in LCC, demonstrating strong market confidence in our approach and technology. LCC plans to use Chrysalisto DeFi for software development and management.
What is the purpose of adapting Chrysalisto DeFi’s software for bonds to life insurance pools?
- The adaptation leverages our proven technology in bond valuation to structure and value pools of life insurance policies. These structured pools can back stablecoins, providing a stable and secure asset base.
What are the benefits of using life insurance pools to back stablecoins?
- Using life insurance pools provides a stable, predictable, and secure asset base. These pools demonstrate non-correlated risk. It helps maintain the stability of the stablecoin, reduces volatility, and increases investor confidence in the cryptocurrency.
Who are the key personnel involved in this project?
- LCC intends to hire Jim Hansen and James Raquepau, the founders of Chrysalisto DeFi, as contractors to develop and manage the project. Their expertise will be crucial in adapting the proven life settlement structure for stablecoins.
What makes Chrysalisto’s approach unique compared to other stablecoin valuation methods?
- Chrysalisto DeFi’s approach is unique due to its use of Bayesian inference for continuous valuation, its integration of life insurance pools, and its focus on transparency and reliability. Our holistic and data-driven methods set us apart from traditional valuation techniques.
What is the rating of the life settlement structure being adapted for stablecoins?
- Egan Jones has rated the life settlement structure adapted for backing stablecoins BBB+, indicating strong financial stability and robust asset management.
What method does Chrysalisto use to value life settlement pools?
- Chrysalisto employs a sophisticated Bayesian method to ensure precise and reliable predictions of future cash flows.
How does the valuation model work?
- The model begins by calculating the observed mortality in a life settlement pool and matching it to predicted mortality. It uses a combination formula to handle potential errors and variations in policy counts, summing mortality data across policies to accurately gauge various mortality scenarios.
What mortality assumptions are examined in the model?
- The model examines several mortality assumptions prepared by three leading longevity estimators and standard mortality tables. Each assumption’s cash flows are predicted, and their net present value (NPV) is calculated.
How are Bayesian probabilities integrated into the model?
- Bayesian probabilities are used to weigh different NPVs, updating the probabilities of each mortality scenario whenever a mortality event occurs. This refines the predictions continually.
What is the outcome of the Bayesian method?
- The outcome is a weighted NPV, representing the most probable future earnings of the life settlement pool, providing investors with a clear, data-driven understanding of potential returns.
Why do top accounting and auditing firms prefer this method?
- This method is preferred for valuing Tier 3 assets like pools of life insurance because it balances risk and reward with scientific precision and demonstrates non-correlated risk.
How can someone engage Chrysalisto DeFi’s IP development and consulting services?
- Email us at contact@chrysalisto.com. We offer detailed consultations to understand your needs and provide tailored solutions based on our expertise and innovative technologies.