Too Long; Didn't Read
To summarize our logic, we added a decentralized oracle component to the Volatility Insurance instrument. The decentralized oracle is responsible for the ETH/USD price feed. Every ETH Holder may place an anonymous bet on the current ETH/USD price. They are then weighted-averaged by the bet sums. This serves as the price feed without any further checks or limitations. The betplacers are then compensated according to how close their bets were to the weighted average, as we would want in a <a href="https://blog.ethereum.org/2014/03/28/schellingcoin-a-minimal-trust-universal-data-feed/" target="_blank">Schelling coin system</a>. Compensation to the decentralized oracle system is derived by commissions on the volatility insurance positions.