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FAQs

What are the risks and how are they minimized?

The general risks associated with using USD8 are:

  1. USD8 smart contract risks
  2. Risks from the underlying yield protocols

How we minimize these risks:

  1. We take a security-first approach when building USD8, including third-party audits. The Cover Token also provides coverage for the USD8 protocol.
  2. We only use top blue-chip DeFi protocols for yield, and our team thoroughly verifies each codebase.


Can I build a third-party Super Power for USD8?

Yes! Reach out to us as early as possible so our team can assist you. Contact: info[at]usd8.finance

How big is the Cover Pool?

It depends on how many users are using USD8, the more users, the bigger Cover Pool. We aim to grow it as big and as fast as we can, however this might take a process. Regardless, it is always beneficial to get in early and start accrue Cover Tokens, so when the Cover Pool is big you can enjoy the coverage.



Where does the funds for Cover Pool come from?

The Cover Pool funds come solely from USD8’s profits, never from user deposits. All user collateral sits in a separate Reserve Pool, which is deployed into blue-chip DeFi protocols to earn yield.



Yes, as long as you hold Cover Token and you are using a covered protocol, all your positions are covered. Cover Tokens provide coverage independently of whether those positions involve USD8 directly.



Will I get 90% full coverage if I am hacked?

It depends. Cover Token payouts aren’t structured like traditional insurance. You’re most likely to receive the full 90 % if:

  • you hold more Cover Tokens than other claimants, or
  • few other users join the claim, or
  • other claimants hold similarly small Cover Token balances

In general, the more Cover Token you have, the better the payout.

How Do You Prevent Fraudulent Claims?

Cover Token is carefully designed with game theory, the claiming process is open and permissionless, anyone can initiate a claim. However there are a few safeguards

  1. To initiate a claim, protocol-specific conditions must be met.
    Typically, the claimant’s LP‐token value must have dropped below a set threshold.
  2. Coverage is capped at 90 % of LP value. If the LP value hasn’t actually fallen, the claimant effectively loses money, disincentivizing false claims.

Detailed protocol-specific conditions here.

How does USD8 make money?

USD8's has a few revenue streams, firstly it makes money from part of user's collateral yield, like USDC but onchain. A portion of this yield is paid to USD8 stakers as yield, another portion is used to seed the Cover Pool. On top of that USD8 also has revenue models associated with security reviews and services.



Who is behind USD8?

We are a team of top-tier security auditors with over 5 years of experience auditing smart contracts, particularly DeFi protocols and Layer 2 solutions in the Ethereum ecosystem, our identity will be revealed at launch.