TIDAL Guarantor Mining Program
Tidal announced phase 3 — the Guarantor Program, that completes Tidal’s insurance ecosystem with protocol teams and their community’s participation.
The more protocol tokens are allocated to the guarantor insurance pool, the greater confidence the public attributes to the safety of their crypto TVL staking activity. At Tidal Finance we facilitate this through incentivizing the guarantors with a certain amount of $TIDAL tokens, while also using these protocol tokens to collateralize the reserve providers USDC capital in the insurance pool. 10% of the claimable amount against the token price day before the hack is distributed to the reserve providers.
Now let’s get into how the guarantor pool works at Tidal:
🔹They are projecting 10% APR for those that contribute to the $100k USD value of native token deposits to backup their own protocols in the mutual cover pool. The pool’s earnings and the amount within the pool are inversely correlated, which means, the earlier guarantors will earn more while later guarantors will earn less APR.🔹
With TIDAL’s initial launch, early guarantors will get weekly rewards by depositing native protocol tokens into the guarantor pool. Up to $192 USD value of TIDAL tokens will be distributed on a weekly basis per guarantor pool, accumulating to an approximately 10% APR for the $100,000 USD value of tokens provided by guarantors.
🔹How guarantors receive rewards with an example:
Say you have tokens of any protocol in the mutual coverage pool, e.g. token $X for protocol X. Deposit $100,000 into protocol X’s guarantor pool would give you two sources of reward –
- 5% of the protocol X’s coverage premium paid by protocol X themselves is rewarded to this pool on a weekly basis.
- TIDAL token reward of approximately ~$192 USD is rewarded to this pool on a weekly basis (see table below).
USD amount of $X Token Deposit
TIDAL Reward (APR)
USD amount of $TIDAL token reward（Weekly)
Protocol X
$100,000
10%
$192
The reward amount is designed to bootstrap approximately 100,000 USD value of the tokens as collateral to the reserve providers. The deposit amount will be monitored and reward incentives calculated to offer 10% APR for guarantors. Nevertheless, reward incentives could be adjusted to maintain the healthiness of the reserve pool weeks after the launch.
🔹Some terms & conditions to highlight regarding the guarantor program:
- Benefit: Guarantor pool earns 5% of the cover premium paid for its guaranteed protocol + TIDAL token incentives.
- Risk: Under a payout event, 10% of the claimable amount against the token price day before the hack is distributed to the reserve providers. E.g. 100k USDC total payout amount would result in 10k USD worth of tokens to be paid out to reserve providers.
- Withdrawal: withdrawal request will become pending next week, if no guaranteed protocol has any valid claims during the time frame, withdrawal amount will be returned to guarantor’s wallet.
What is Tidal?
Tidal Finance is the first multi-chain flexible insurance platform, working directly with companies, and the first insurance solution to launch on Polygon. The flexible insurance model allows companies to adjust their premiums on a weekly basis based on fluctuating TVLs (Total Value Locked) and evolving investment strategies. Users can buy and cover insurance purchasers and receive the highest APYs in the industry. Tidal Finance is also the first DeFi insurance provider to offer gas-free transactions for cover providers and buyers.
The team is made up of experienced professionals with advanced backgrounds in math, analytics, blockchain startups, and finance, who previously worked for JP Morgan Chase Asset Management, Bank of America Investment Banking, Hedge Funds and Galaxy Digital. Tidal Finance is based in New York City, NY.
📰 INFO:
https://medium.com/tidal-finance/introducing-the-tidal-guarantor-mining-program-a3b7cc186107
