Basic Concepts in Degis Protocol Protection

Shield

Shield is a USDC-collateral stable coin that is generated by and used in the Degis protocol. One Shield is fully collateralized by one USDC which means that Degis protocol should stake one USDC to mint one Shield. When a user puts in certain stablecoins, Degis will call DEX protocol like Platypus and Curve to swap the stablecoins to USDC and use the USDC to mint the equal amount of Shield. If a user puts in USDC, we will directly mint Shield for the user.

Protection Pool

The protection pool is the storage pool of protocol protection funds, this pool will pay all compensations. Users can stake the shield into the protection pool to become the underwriter of all insured projects on the Degis platform. After staking, they will receive protection Pool LP tokens.

Protection Pool LP Token

The proportion of users holding Protection Pool LP Tokens represents their share in the protection pool. (For example, if there are 100 outstanding protection pool LP tokens, and there are 80 shields in the protection pool, then 1 protection pool LP token can claim 0.8 shields)

Priority Pool

Each project has a corresponding Priority Pool, which will be used as compensation first after a claim event occurs in this project.

Priority Pool LP Token

When users stake Protection LP token into Priority Pool, they will receive Priority Pool LP token as rewards, which is the token that used to mine protocol native token (45% of total premium paid for this protocol)

Protocols to Provide Protection & Premium, the maximum coverage ratio

veDEG holders can propose and vote on whether Degis platform will cover a protocol and its Base Annualized Premium as well as Maximum Coverage Ratio. If over 50% veDEG votes in favor, Degis will provide Protocol Protection to that protocol with the initial Annualized Premium and Maximum Coverage Ratio.

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Project Degis

Project Degis

The 1st DeFi insurance protocol on Avalanche https://degis.io/