🪣Indemnification Pool
Caddy Finance's indemnification process is designed to provide investor protection while maximization returns. Here's how it works:
1. 💰 Bootstrapped Yield Pool
Starting point for all yields
Aggregates returns from various sources
Acts as the primary capital reservoir
2. 🎭 Indemnification Pool
A portion of yields is allocated to this specialized pool
Serves as a protective mechanism for investments
Aims to mitigate potential losses in adverse market conditions
3. 🎟️ Protocol Tokens
Investors receive protocol tokens for participating
Represents a claim on the indemnification pool
Offers potential for additional benefits and returns
4. 🔒 Token Locking Mechanism
Protocol tokens are locked for a specified period
Encourages long-term participation
Aligns investor interests with platform stability
5. 📊 Market Response Strategies
Bull Market Scenario 🐂
Token value may appreciate
Potential for profit upon unlocking and selling tokens
Bear Market Scenario 🐻
Indemnification mechanism activates
Stop-loss feature triggers if token price falls below a certain threshold
Provides a level of downside protection
Key Benefits
🚀 Upside Potential: Opportunity for growth in favorable markets
🪂 Downside Protection: Risk mitigation in unfavorable conditions
⚖️ Balanced Approach: Combines growth potential with risk management
😌 Increased Investor Confidence: Added layer of security for investments
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