MDS 2.0 White Paper –  Mutual DAO

This paper describes a new mutual aid system design based on blockchain & smart contract, which based on DAO (Decentralized Autonomous Organization) and can be used for DeFi insurance, Smart Contract insurance and Smart Wallet insurance, etc.


The internet-based mutual aid systems, such as the “XiangHuBao” by Ant Financial, are more efficient systems than traditional mutual insurance. However, the operating and trust costs are still relatively high, the capital management has a centralized risk, and it is unable to provide more subdivided mutual aid needs.

On the other hand, the blockchain-based mutual aid system is limited by the transaction cost of the public chain. It cannot effectively reduce the operating cost and provide attractive incentives for members to acquire new users and to be involved in community governance.



DAO  – Distributed autonomous organization, DAO organization truly belongs to the network, everyone can have their own right to speak, and has a corresponding influence on the development of the organization.

Initiator – Responsible for creating mutual aid contract, setting initial parameters, and mutual-aid range

Member – Participate in mutual aid programs and system governance through payment passes to mutual aid contracts

Applicant  – Members who meet the conditions for mutual aid can initiate mutual aid applications with mutual aid contracts

Referrer – Invite new members to join the mutual contract through a customized invitation code, and could get dividend

Mutual aid pool – Part of the token paid by the member enters the mutual aid pool for mutual aid application

Dividend pool  – Part of the token paid by the member enters the dividend pool

MDS  – The token of the system represents the governance weight of all members. After staking, it can participate in the governance of mutual aid applications. The staked part can be sold based on the AMM protocol and transfer to others.

SMDS  –  Staked MDS, which could participate the system governance through voting. It is an important part of DAO.

Mutual Aid Balance   –  The balance of the member’s part of the mutual-aid pool, will be deducted with each successful mutual aid. when it equals to zero, the member will not be qualified to apply for any mutual aid. He needs deposit to keep valid for mutual aid program.

Voting time window  –  The length of time that for community to vote for mutual aid application, after which the community can no longer vote or change the vote for the application.

AMM  – The protocol for creating a token by setting a reserve. The created token is the MDS mentioned in the article. The reserve is the dividend pool mentioned in article. By using these reserves, MDS directly obtains value and solves the problem of insufficient circulation.
AMM mathematical formula:

MDS DAO Structure


Create Contract

The initiator is responsible for creating the mutual aid contract. During the creation process, the following parameters need to be set and complete smart contract deploying:

The proportion of funds entering the mutual aid pool
The proportion of funds entering the dividend pool
Referral ratio
Token for mutual aid
Minimum token of joining the mutual aid
Maximum token of mutual aid application
Voting time window
Mutual aid coverage

Ideally, a trusted mutual aid contract should transfer the authority to a MultiSig account, and subsequent escalation and adjustment of the contract requires the agreements of majority MultiSig committees.

Join Mutual Aid

Members participate in mutual aid programs and governance by paying tokens to mutual aid contracts.

The token will be distributed to three places according to the contract settings:
1. Mutual aid pool for future mutual aid applications
2. Dividend pool
3. Referrer (if any)

At the same time, users get MDS. The number of MDS is determined by the AMM algorithm.
The MDS can be transferred or sold to the system. The sale price is determined by the AMM algorithm and the counterparty is a dividend pool.
MDS can be staked or un-staked at any time, the staked MDS becomes SMDS, and SMDS can participate in mutual aid system governance.

Apply for Mutual Aid

Any member who meets the mutual-aid conditions could initiate a mutual-aid application to the mutual aid contract.

To apply for mutual aid, you need to provide:
1. Receive account
2. Applying amount
3. More information to help the community review this case.

Initiating an application needs to meet:
1. The individual’s mutual aid balance is greater than zero.
2. The applying amount for mutual aid tokens is less than the maximum set by the initiator.

Mutual Aid Review Process

After the mutual aid application is submitted, the voting time window will be opened.

Only the staked MDS, which we call SMDS is able to vote, the voting option is [Agree] or [Disagree].

Before the voting deadline, SMDS holders can vote or change voting options at any time.

The blockchain status will be recorded when the voting ends and the result of the final mutual aid application will be determined.

SMDS can vote for multiple mutual aid applications at the same time, and each voting is independent.

Execute Mutual Aid

After the mutual aid application is closed, anyone can execute the mutual aid application (normally will be the stakeholder, such as the applicant) and pay the resources needed to execute the contract.

The following rules must be met to send token from protection pool to applicant’s receive account:

Among the voted SMDSs, the number of SMDSs for [Agree] > the number of SMDSs for [Disagree]

The number of tokens that are expected to be paid to applicant is calculated by the following formula:

Estimated payment = number applied * (number of SMDSs agreed / total number of MDS in DAO)

The actual amount paid may be less than the amount expected to be paid because:

Per capita estimated payment = estimated payment / number of members

Deducting each participant’s account according to [per capita estimated payment], if the number of tokens in account is less than [per capita estimated payment], it will be deducted to zero.


With the improvement of data on the chain, Oracle could be used in mutual aid review protocol as a data dimension in the future, providing more accurate analysis and improving system efficiency.

The system is also suitable for all non-profit organizations as the token donation model and will be an important direction of the smart contract + DAO model.


This is the first global mutual insurance marketplace on the blockchain. It combines the traditional mutual insurance model with blockchain and smart contract which provide a low operation cost and guarantee of compensation for risks.

We believe that the blockchain will bring more inclusive protection product to the world.





MDS 2.0 白皮书 – 社区自治的互助系统 (Mutual DAO)

本文阐述一种新的基于区块链智能合约的互助系统设计,通过 DAO 自组织的形式实现更高效的智能合约互助保险系统,应用场景包括 DeFi 保险、智能合约保险、智能钱包保险等。






DAO – 分布式自治组织,DAO 组织真正属于网络,人人都可以拥有自己的话语权,对组织的发展有着相对应的影响力。

发起人 – 负责创建互助合约,设定初始参数,以及互助范围

参与人 – 通过支付通证到互助合约,参与互助计划以及系统治理

申请人 – 满足互助条件的参与人,可向互助合约发起互助申请

推荐人 – 通过自定义的邀请,邀请新的参与人加入互助合约,可以获得分成

保障池 – 参与人支付的一部分通证进入保障池,用于互助申请

分红池 – 参与人支付的一部分通证进入分红池

MDS – 系统通证,代表所有参与人的治理权重,抵押后可以参与互助申请的治理,未抵押部分可基于 AMM 协议进行买卖,对手方是分红池,也可以进行转账

SMDS – Staked MDS,抵押的MDS,可以通过投票参与系统治理,是 DAO 的重要环节。

互助余额 – 参与人的保障池余额,随着每次互助成功扣减,等于零后不能申请互助,需要继续充值

投票时间窗口 – 申请人申请互助后,留给社区进行投票的时间长度,之后社区无法再对该申请投票或更改投票

AMM算法 – 通过设置储备金的方式创建通证的协议,创建的通证也就是本文中的 MDS,储备金是本文中的分红池。通过使用这些储备金,MDS直接获得价值,解决通证流通性不足的问题。AMM算法的数学公式如下:

MDS DAO 结构详解









同时用户获得MDS,MDS 的数量由系统 AMM 算法决定。
MDS 可以转账,也可以出售给系统,出售价格由 AMM 算法决定,对手方是分红池。
MDS 可以随时抵押和解除抵押,抵押的MDS 成为 SMDS,SMDS 可以参与互助系统的治理。







只有抵押的 MDS,这里我们称之为 SMDS (Staked MDS) 才能参与投票,投票选项为【同意】或【拒绝】。

投票期截止之前任意时间,SMDS 的持有者都可以进行投票,或者修改投票选项。


SMDS 可以同时给多个互助申请投票,每个申请的投票互相独立。




参与投票的 SMDS 中,【同意】的 SMDS 数量 >【拒绝】的 SMDS 数量


预计支付 = 申请数量 * (同意的 SMDS 数量 / MDS 系统内总量)


人均预计支付 = 预计支付 / 参与人数量



随着链上数据的越来越完善,未来 Oracle 可以作为一个数据维度加入互助审核协议中,提供更加精准的互助范围分析,进一步提升系统效率。

该系统同样适合于所有非营利组织的通证捐款模型,将会是智能合约 + DAO 模式的重要发展方向之一。


MDS 是世界上第一个相互保障合约市场,基于区块链技术提供相互保障智能合约创建和使用平台,有效降低保障产品的运营成本,同时提供更高的保障资金安全性。

MDS 坚信区块链将给世界带来更普惠的保障产品。





MDS 白皮书 1.0 – A Global Mutual Aid Marketplace on the Blockchain