FAQ

Why is DeFI insurance important?

DeFi insurance protects investors, traders, and protocols from losses arising from risk events such as flash loan attacks and exploits from bugs in a protocol. Steady State adds a secondary market to DeFi insurance, making it a profitable undertaking for coverage providers, traders, and investors.

Can Steady State cover protocols from different chains?

Steady State aims to be a cross-chain insurance solution, but will initially launch on the Ethereum mainnet. Future iterations of the platform will target cross-chain liquidity for protocols featured across multiple blockchains, thereby allowing for the possibility of coverage across multiple chains. Protocols hosted on one blockchain are not subject to cross-chain liquidity, and therefore don’t need cross-chain coverage. ‌

Can I opt out of a policy agreement before the term ends?

Although users cannot unstake their assets from a coverage pool before the term's expiry, they will be able to trade their collateral, effectively letting them opt out of the agreement. Assets staked in a coverage pool will earn a “receipt” in the form of pool tokens (plTokens). The aim is for these tokens to be tradeable on secondary markets, meaning users can transfer ownership of a principal deposit. This is subject to change as our development team progresses in building our platform.

Who decides the coverage amount of a policy?

Entities or Protocols seeking coverage may select the overall amount of coverage they seek from coverage providers. The coverage sought cannot exceed the number of assets staked in the coverage pool.

How do Steady State rewards work?

When users stake assets in a coverage pool, they will be rewarded with premium payouts and STDY tokens. Some protocols may opt to provide their native token as an additional incentive (called “shield mining”). Users may also diversify their assets by staking assets in Index Pools, which feature multiple policies. This generates the possibility of earning a variety of shield mining tokens if offered by the participating protocols.

Does the community decide the outcome of any claims?

Steady State’s claims process is automation-focused, with the goal of removing human intervention, bias, and error. Due to the complexity and nuance of risk in decentralized finance, it’s reasonable to assume that some policy events may not fit within the parameters established by Steady State’s protocol (which includes smart contract automation via the Risk Analysis Database and Chainlink Keepers). In the event that the validity of a claim cannot be unequivocally accepted or denied, decentralized governance measures (through an Aragon Court, for instance) may be utilized to settle the claim.

Is Steady State operational?

Steady State’s products are not yet ready for public use and remain in development. Please see the roadmap for a more detailed outlook/ timeline. Follow Steady State on social media or sign-up to receive the Steady State newsletter by visiting our homepage for regular updates from the team.
Last modified 1mo ago