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. As long as you have used USD8 before, you will get some coverage.

💭 So I have to hold USD8 to build a USD8 History Score?

No. While holding USD8 certainly build your USD8 History Score, you can also deposit USD8 to a recognized yield vault; these will also count towards your USD8 History 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 yield.

💭 How safe is the Cover Pool?

Assets deposited in the Cover Pool might be deployed 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 USD8 History 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 USD8 protocol.

💭 Will I always get 80% of my money back for a defi protocol with 80% coverage?

Not necessarily. The actual reimbursed amount depends on:

• Your USD8 History Score based on your USD8 history
• How many other users are claiming and their USD8 History Scores
• The balance of the Cover Pool

In practice, the more USD8 History 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. USD8 also earns from recovering losses through the White Hat Economy.

💭 How can I contribute or help with USD8?

We are a brand new primitive with real unsolved challenges, and we welcome community contributions across mechanism design, partnerships, marketing, and more. See the Help Needed page for the current list of open challenges. The best place to post proposals, critiques, and ideas is our GitHub Discussions. Contributors can earn Boosters, permanent on-chain attribution, and priority on future paid work.

💭 Who is behind USD8?

USD8 was founded by an OpenZeppelin auditor and security researcher with over 5 years of experience, specializing in auditing DeFi protocols.

We are passionate about DeFi security and dedicated to building solutions that make the on-chain environment safer.