Degis will offer protection for Platypus via Protocol Protection
Degis is thrilled to announce a new collaboration with Platypus! By integrating our inspiring Protocol Protection into Platypus, users can expect to have a reassuring user experience. We strongly believe through this collaboration, all users can be guaranteed sufficient compensation under this volatile bear market. Together, we will build a safer Web3 World!
How does Protocol Protection work?
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 Double Protection Design
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.
Each project has a corresponding Priority Pool, which will be used as compensation first after a claim event occurs in this project. Underwriters can further stake the protection pool LP token to the priority pool and enjoy extra mining rewards generated by each priority pool. But this also means that the user needs to bear higher risks for this project, because when this specific protocol has a claim event, the liquidity providers who stake protection pool LP tokens in the priority pool of this protocol will lose their staked protection pool LP tokens and the shield corresponding to the protection pool LP token in the priority pool will be used for compensation first.
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.
- Initial Annualized Premium
Represents the base premium amount required to purchase protection for a project.
For example, the initial annualized premium for protocol A protection is 3%, if someone wants to buy one year of protection for protocol A with a cover amount of 1M, he has to pay 1M*3% = 30K
- Maximum Coverage Ratio (Quota)
Maximum Coverage determines how much coverage the platform can provide.
For example, suppose the total TVL of the Degis protocol protection is 100M (i.e. There is 100M shield inside the protection pool), and the Maximum coverage ratio for protocol A is 20%. In that case, our platform provides up to 20M protection coverage for this protocol.
The Platypus Finance protocol is a single-side AMM (decentralized exchange) designed for exchanging stable cryptocurrencies (ERC20 tokens) on the Avalanche blockchain. The protocol is implemented as a set of smart contracts designed to prioritize censorship resistance, security, self-custody, and maximum capital efficiency. Platypus features single-token provision, eliminating impermanent loss risk for liquidity providers, and minimizing slippage for traders.
Learn more about Platypus: https://platypus.finance/
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