FAQs
💭 Can I just buy USD8 and use it for claiming whenever I need it?
No. Cover amount depends on your USD8 usage history, without it you will not get much coverage. It's best to start using USD8 so you can build up your history.
💭 I have no USD8 now, but I used USD8 before, do I still get coverage?
Yes. Coverage depends on your USD8 usage history, as long as you have used USD8 before, you should get some coverage.
💭 So I have to hold USD8 to build a cover score?
No. While holding USD8 certainly build your cover score, you can also deposit USD8 to a recognized yield vault; these will also count towards your cover score.
💭 How safe is the Protected Savings vault?
It is one of the safest savings vaults because it comes with an 80% coverage. This means you can always claim up to 80% of your position value from the Cover Pool if something goes wrong.
On top of that, you still earn competitive the yield.
💭 How safe is the Cover Pool?
Assets deposited in the Cover Pool are used to cover hacking losses from Covered Protocols. This makes it riskier than the Protected Savings vault, which is why it offers a higher APY.
Our security experts independently vet and audit every protocol before offering coverage. Claims are not expected to occur often, but there is always a possibility.
💭 So all my positions in Covered DeFi Protocols are protected?
Yes. As long as you use USD8, you are covered. The more USD8 and the longer you hold, the higher your cover score.
💭 Do I forfeit my covered LP token when claiming from the Cover Pool?
Yes. To claim from the Cover Pool, you must provide a covered LP token, which becomes the assets of Cover Pool liquidity providers.
💭 Will I always get 80% of my money back for a defi protocol with 80% coverage?
Not necessarily. The actual reimbursed amount depends on:
- How many other users are claiming and their cover scores
- The balance of the Cover Pool
In practice, the more cover score you have, the higher your claim weight. The max reimbursement amount is 80% your LP value, but it is also possible you might get less than that.
💭 How do you prevent fraudulent claims?
USD8 only covers up to 80% of any position at max. Unless the LP token’s value drops below 80%, it is not financially rational to file a false claim.
💭 How does USD8 make money?
Like most stablecoins, USD8 generates revenue from collateral yield.
💭 Who is behind USD8?
USD8 was founded by an OpenZeppelin auditor and security researcher with over 5 years of experience, specializing in DeFi protocols.
We are passionate about DeFi security and dedicated to building solutions that make the on-chain environment safer for everyone.