Tidal Launched StaFi Insurance Pool on Its Platform
Tidal has opened an insurance pool for StaFi’s rETH App and rBridges contracts on Tidal’s insurance platform.
And the insurance pool is live now, so everyone could deposit USDC to cover for StaFi.
Tidal is the first multi-chain flexible insurance platform, providing coverage plans directly to other protocol teams, and the first insurance solution to launch on Polygon.
How to Participate
If you are looking for high yield products and confident with low default (hack) risk for StaFi’s rETH App and rBridges contracts, you could stake the stable coin (USDC) on the Tidal platform and provide reserve for StaFi.
The current coverage plan covers StaFi’s smart contract vulnerabilities that are deployed on Ethereum network, including rETH App and rBridges. Malicious attacks and economic exploits resulting in StaFi users’ asset loss would qualify for a valid claim. Any valid payout amount will be directly paid to the StaFi team to recover StaFi users’ loss. For more general coverage policy wording please refer to Tidal’s gitbook cover policy section.
Benefits of Providing Reserve for StaFi
Anyone who provide the reserve for StaFi protocol on Tidal’s platform, will earn an APR of 10% ~20% with the following 2 rewards:
1) Earning cover premium directly from StaFi’s cover plan
The 90% of the premium fee paid by StaFi protocol, as the insurance buyer, will be distributed to the reserve provider.
2) TIDAL token rewards through the Cover Mining Program
In the previously released cover mining article, up to $2885 USD value of TIDAL (721,154 amount of TIDAL tokens at price 0.004) will be rewarded to the reserve providers every week.
Risks
Stable coin reserve pool will be used to compensate for a valid claim. Cover providers’ capital will be reduced proportionately by the percentage of their position in the pool. The total payout amount in the event of a smart contract hack is up to the lower of the (a) amount of loss due to the hack and (b) the cover purchased.
Check the details:https://docs.tidal.finance/getting-started/network-roles/reserve-provider
Future Work
In the near future, Tidal will help open the Guarantor Pool for StaFi, so that everyone could deposit FIS tokens (wrapped tokens on Polygon) into the Guarantor Pool to help enhance the reserve pool of StaFi and earn an APR of 10% from TIDAL tokens and 5% Premium fees. The details will be released soon, and you could previously check the information about the Guarantor Pool here: https://docs.tidal.finance/getting-started/network-roles/guarantor
References
1) Deposit USDC: https://app.tidal.finance/
2) Transfer token to Polygon: https://docs.tidal.finance/how-to-use-1/transfer-token-to-polygon
3) Provide USDC Reserves: https://docs.tidal.finance/how-to-use-1/provide-usdc-reserves
4) Tidal Website: https://tidal.finance/
5) rETH App Security Audit Report: https://github.com/stafiprotocol/stafi-bootstrap/blob/master/audits/reth/PeckShield-Audit-Report-StaFi-Eth2-Staking-v1.0.pdf
6) rBridge Security Audit Report: https://github.com/stafiprotocol/stafi-bootstrap/blob/master/audits/REP-StafiBridgeSolidity-13_11_2020.pdf
What is Tidal?
Tidal.Finance makes DeFi safer by providing insurance coverage for assets across chains in custom balanced liquidity pools. With Tidal, Users can select risk pools by choosing any combination of protocols/assets and their coverage terms (premium, cover period, etc). Liquidity Providers, on the other hand, can invest in pools that suit their risk/reward ratio.
What is StaFi?
StaFi is the first DeFi protocol unlocking liquidity of staked assets. Users can stake PoS tokens through StaFi and receive rTokens in return, which are available for trading, while still earning staking rewards. rToken is a synthetic staking derivative issued by StaFi to users when users stake PoS tokens through StaFi rToken App (https://app.stafi.io). rTokens are anchored to the PoS tokens staked by users and the corresponding staking rewards. rTokens can be transferred and traded at any time.
📰 INFO:
https://medium.com/stafi/tidal-has-launched-the-stafi-insurance-pool-on-its-platform-270d8e370a44
