Stability pools

Protects

• Depositor funds

Stability Pool

The stability pool acts as insurance for DeltaPrime's users. While the payment of claims from this pool is under full discretion of the team (and later the DAO), you will find the guidelines to which the team strives to adhere below.

The Stability pool is used as reimbursement in case of an exploit / bug of an integrated protocol or DeltaPrime, leading to a loss of funds despite the user's best efforts to protect his capital. If an underlying protocol is exploited to the point where the protocol accrues bad debt, and the underlying protocol has indicated there will be no reimbursements, DeltaPrime will cover lender's capital first. Borrowers, who allocate borrowed funds to chosen protocols, bear more responsibility for the loss of capital and are therefore not automatically reimbursed in the case of an underlying protocol's exploit. By the team's (and later the DAO's) discretion however, borrowers can be (partially) made whole as well in the case of an exploit, depending on that exploit's specifics.

Borrowers can appeal for stability pool reimbursements if the loss of funds is a direct result of a mistake made by DeltaPrime's development team. In that case, the user has to exhaust all other reasonable options to prevent loss of funds, and has the burden of proof to show the loss of funds is a result of faulty code. Provided a substantiated claim, DeltaPrime's team will assist in finding the source of the loss of funds. Opportunity cost is never covered by the stability pool.

At the time of writing, DeltaPrime has two sources of its stability pool (together shown on the Savings page as Reserve fund). The Protocol Owned Liquidity (~$1.6mm) has been built up since February 2023 through redirecting a portion of protocol revenue to the stability pool. The Atomica insurance ($700k) is paid for from the POL stability pool.

As DeltaPrime scales, more additional sources for the stability pool will likely be introduced. The goal of these pools is to provide a liquidity layer in the case of an (underlying) exploit that isn't covered by any of the other security measures. As a user of DeltaPrime, you will be able to provide DeltaPrime's first line of defense in return for additional yield. Until then, DeltaPrime will only allow the integration of the strictest of protocols and tokens.