StaFi rToken App Has Integrated Tidal’s Insurance for rETH Holders
- StaFi rToken App has integrated Tidal’s insurance services for rETH holders.
- rETH holders could directly buy coverage on rETH DApp with the FIS and USDC tokens on Polygon.
- In order to incentivize the rETH holders to purchase the rETH insurance, the insurance premium will be only 1% instead of the 4% (yearly cost), which means StaFi foundation will compensate 75% of the total insurance fees.
- Total insurance cap for rETH users will be 1million usdc for this time, so welcome to purchase.
While the StaFi team has been making tremendous progress on our products, the safety measures to protect our users’ funds are never overlooked. Three months ago, we partnered with Tidal.Finance, a leading insurance platform, to secure a certain TVL on our platform in case of a smart contract exploit. The asset under coverage is 2 million dollars purchased by our team.
Over the past couple of months, we have received numerous inquiries from our community on how to secure their funds with more coverage, since the 2 million dollar coverage might not be sufficient to cover their loss in full. But as a project team, securing a very high TVL alone would increase the burden on our treasury.
Integrations with Tidal Insurance
Thus, we have been working closely with Tidal to provide our users a self purchase function for those who want to increase the safety measures of their own funds.
- Users can purchase coverage with FIS tokens (Polygon) as well as USDC (Polygon).
- No need to pay all costs upfront, the coverage plan is automatically extended on a weekly basis. As long as there is enough balance in your payment account, your asset is being covered.
- Total insurance cap for rETH users will be 1million USDC for this time. Not sure how much coverage you want? No problem, the amount of coverage can be adjusted any time in your account.
- Concerned about how to keep up with the claim when a hack happens? We take care of that by working together with the Tidal team. There is no need for you to file, damage can be assessed based on your purchase wallet and compensation will be made based on your purchase record.
The current protocol level coverage is paid from our treasury. Use coverage is just an additional feature we are offering to the community for those who want to take additional precautions. Here are a couple reasons why we think such an offering would be advantageous:
- Protocol level coverage could also be used to recover the funds, e.g. trace hacker, compensate hacker in the event of smart contract hack, since the return could be much higher for our users. The unused funds will be used to compensate our users.
- Users who purchased coverage would be paid out according to their covered amount in full, reducing the uncertainty of partial coverage that we would provide from protocol level coverage.
In order to incentivize the rETH holders to purchase the rETH insurance, StaFi foundation will compensate 75% of the total insurance fees, which means the rETH insurance premium is only 1% for rETH holders, not the real premium 4% on Tidal platform.
That being said, we are very excited about this offering, user safety has always been our top priority and we have been working on this solution for a while with the Tidal team. Earn while staying safe!
1.Quick How-to Guide: https://docs.tidal.finance/how-to-use-1/buy-cover
2.Tidal Portal: https://stafi.tidal.finance/
3.Coverage policy: https://docs.tidal.finance/getting-started/cover-policy
Terms and conditions
**The policy protects smart contract hacks of StaFi’s own protocol (not covering the loss due to a 3rd party protocol).
**Covered amount could be limited by the capacity of coverage available. Coverage cost is based on the actual covered amount.
StaFi is the first DeFi protocol unlocking liquidity of staked assets. Users can stake PoS tokens through StaFi and receive rTokens in return, which are available for trading, while still earning staking rewards. rToken is a synthetic staking derivative issued by StaFi to users when users stake PoS tokens through StaFi rToken App . rTokens are anchored to the PoS tokens staked by users and the corresponding staking rewards. rTokens can be transferred and traded at any time.