Degis will offer protection for Defrost Finance via Protocol Protection
Degis is thrilled to announce a new collaboration with Defrost! Users can expect a reassuring experience by integrating our inspiring Protocol Protection into Defrost. We strongly believe through this collaboration, users will be able to position their capital efficiently and have some extra peace of mind. Altogether, we will create a safer Web3 environment!
Introduction to Protocol Protection
Protocol Protection is the next-generation protection product that offers exhaustive protection for all kinds of on-chain risks. It covers most risks that may appear in the decentralized world, and the innovative mechanism covers some blind spots in the current De-Fi insurance market.
“Protection Pool + Priority Pool” Design
Degis Protocol Protection pools consist of two parts: Protection Pool and Priority Pool. The Protection Pool is the pool that provides protection to all insured protocols on Degis platform. Under Protection Pool, there are specific priority pools for every insured protocol (i.e. Priority Pool A is the specific insurance pool for Protocol A).
Degis is the first protocol to propose dual protection pools model. By the “Protection Pool + Priority Pool” design, underwriters can put their funds into the protection pool and underwrite all protocols that are insured by Degis protocol. As a result, underwriters can earn premium income from all protocols that exist on the platform, which greatly improved the capital utilization for underwriters.
In the meantime, for Defrost, underwriters can stake the Protection Pool LP tokens into the specific Defrost Priority Pool and enjoy extra premium income.
The design of Degis “Protection Pool + Priority Pool” allows users to underwrite multiple projects at the same time, which greatly improves the utilization of funds while ensuring full compensation, and also brings more generous rewards to underwriters.
Dynamic premium design
In order to make the premium better reflect the real market conditions and the risk of the project, Degis’s dynamic pricing model will adjust the premium price based on the supply and demand relationship of protections. Degis’s premium model includes two parts: base premium + dynamic premium.
Base Premium will be set by community voting when the insured protocol is listed on Degis. For Defrost, the initial base premium is set by all the veDEG holders, and the annualized premium in the first 7 days will be fixed at the base premium. After 7 days, the premium price will be determined by the market. The amount of Protection Pool LP tokens in each protocol Priority Pool can also influence the price.
The Defrost V2 is Avalanche’s premier native leverage trading platform. We provide users with the opportunity to trade futures on mainstream crypto assets using a completely decentralized, permissionless platform. Relying on an innovative super vault mechanism, the protocol reinvests LPs assets into third-party platforms, providing higher and more stable APYs. Leveraging happens directly on dexes, ensuring the deployment of new pools is rapid and traders face minimal slippage.
Degis is the next-generation all-in-one protection protocol, the first on Avalanche. Degis will offer exhaustive protection to users and traders, offer a decentralized protection market and ultimately bring scalable risk management to the crypto world.
Learn more about Degis: https://degis.io