Naughty Price Protection

The high volatility of the market, like the fire of the evil dragon destroying the village, constantly pose a huge threat to everyone’s crypto assets. Degis warriors are here with their huge shield — the Naughty Price Protection, resisting all attacks from the market and protecting degisons.

With Naughty Price Protection, everyone is protected from the impact of extreme market volatility on crypto assets

This article will introduce how to use the Naughty Price Protection.

What is Naughty Price Protection?

The naughty price protection is the next generation token price protection launched by Degis on April 15. With the initial launch, $AVAX is the first token that we provide protection . More Avalanche ecosystem tokens will come in the near future.

In order to better meet the needs of users, and provide them with the best price, Degis Naughty Price protection adopted the AMM model to trade covers, which is the first in protection market.

How to use Naughty Price Protection?

Basic Information

Let’s take the AVAX94L2104 as an example:

Type: $AVAX Token Price Protection
Trigger Price : $94
Expiry Date: 2022–4–21
Compensation: Protection token holders will be compensated $1 for each token if the price of $AVAX on expiry day is lower than $94

Think about it…

If you buy 1 $AVAX at the price of $94 on 2022–04–01 and use it to provide liquidity on Trader Joe for 20 days.

If the price on 2022–04–21 is higher than the price that you bought 20 days ago, you can earn from both price benefit and LP mining rewards, which is the best situation.

But what if the price of $AVAX is lower than 94 on that day? Will you still make profit through this operation?

That is why we need Naughty Price Protection.

Time to protect

The price of protection tokens on the day 2022–04–01 is about 0.6 per token while the AVAX is at $94.

For example:
If you want to cover the risk that the price of $AVAX falls from 94 to 84, you can buy 25 protection tokens on Degis.
Cost: $94 for 1 AVAX + $15 for 25 protection tokens
Total cost: $109

AT the expiry date you will gain: 25*$1 = $25 for compensation.
If the price of $AVAX falls to 84, your total asset is still: $84 + $25 = $109 which you can totally enjoy your rewards from LP mining!

If the price of $AVAX is between 94 and 84, you can even get benefit from the protection you bought, for example if the price is $90, your total assert on the expiry date is $90 + $25 = $115! While you are still enjoying the yield on Trader Joe.

On the other hand, if the price of $AVAX is going up, you can still sell the protection token before the lock up date.

For example, on 2022–04–02, the price of $AVAX is about $103 while the protection price is $0.54.

If you sell all of your protection token now, the total assert for you now is : $103(1 AVAX) + $13.5($0.54*25 , for protection token sells) = 116.5, even greater than you initial assert!

By Naughty Price Protection, you can easily protect your asset from the market high volatility.

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Project Degis

Project Degis

The 1st DeFi insurance protocol on Avalanche