StaFi rToken App Integrates Tidal Insurance For rEth Holders
Since the inception of DeFi and smart contracts, a lot has happened in the blockchain space, aside from a high level of profitability for DeFi investors who provide liquidity, there have also been some drawbacks which include rug pulls and smart contract hacks putting investors’ funds at risk.
The team at StaFi Protocol is very much aware of these drawbacks especially the issue of smart contract hacks as it poses a threat to the funds of StaFi users, it is as a result of this, that StaFi has adopted some safety measures to protect the funds of StaFi users from these hackers. One of these measures has been to partner with Tidal Finance, a top insurance platform.
The aim of this partnership was to secure a certain Total Value Locked (TVL) to insure investors against any potential hacks that might lead to loss of investors’ funds. The insurance coverage purchased by the StaFi team was $2million at the time the partnership was formed. However, as the StaFi community continues to expand, numerous inquiries on how to secure funds with more insurance coverage were received by the StaFi team from its community members, but securing a higher TVL alone, higher than the initial $2million as a team was not a viable option for StaFi as that would seriously increase the burden on the team’s treasury, as a result, StaFi are intensifying the partnership with Tidal to provide users with a self-purchase function where they will be able to insure their funds themselves and ensure the safety of their funds.
Features Of the StaFi Integration with Tidal For rEth Holders
1. rEth holders will be able to purchase coverage with $FIS and $USDC (Polygon).
2. Users will not need to pay upfront for the coverage plan, as the plan will be extended automatically on a weekly basis, provided there is enough balance in the payment account.
3. In the event of a hack, the StaFi team and the Tidal team takes care of all the filing process, as there will be no need for users to file for themselves, as all damages will be assessed based on purchase wallet and compensation made accordingly based on purchase record.
4. The total insurance coverage for rEth users will be 1 million $USDC but the amount of coverage can be adjusted at any point in time by the user to suit the amount of coverage he/she prefers.
Incentives For rEth Users
To encourage rEth holders to purchase the rEth insurance coverage, StaFi will compensate for 75% of the insurance fees which means the insurance premium will be just 1% for rEth holders and not the total 4% as stated in the Tidal platform.
This new integration plan will be of huge advantage to all rEth holders as all users who use the self-purchase function would be compensated in full in cases of hacks depending on the amount they covered for thereby reducing the chances of partial compensation that the StaFi team might provide as a result of limited insurance coverage. This is a welcome initiative, as it goes a long way to show that the protection and safety of users’ funds is top priority for StaFi Protocol.
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.