Insurance Restaking

An innovative growth mechanic for an otherwise minimal growth low-risk fund.

Restaking is the process of staking your rSOL again in order to gain higher yields from second order functions. This does however come with additional smart contract risk such as slashing in the event of insurance claims etc.

Minimum Insurance Ratio for Assets Under Management

Reflect Protocol's maximum assets under management (AUM) are directly linked to the total value locked (TVL) in its Insurance Fund. This linkage is due to the necessity of maintaining a minimum insurance percentage relative to the deposit cap. In simpler terms, every dollar deposited into Reflect Protocol must be partially insured.

Upon deployment, the protocol has set this insurance ratio at 1:0.2, meaning that for every dollar deposited, 20 cents of insurance must be available. This will initially be funded by the founding org up to 2M USD.

Read more about the Insurance Fund.

Boosting Stake Yields by Managing Protocol Risk at the Personal Level.

Distributed Protocols should reward those who take the most 'productive risk' in which allows for the growth of revenue. In the case of Reflect Protocol insurerers onboard the most risk as the insurance fund acts as the first backstop to any funding rate losses.

Because of this, the protocol is designed in its early stages to distribute a major portion of revenue via the insurance fund. Both in yield distribution and in fund growth. Insurance fund payments will make up 30% of all yield made by the protocol for the first 3 years unless modified via governance.

Individuals can opt-in for a portion of this yield, by Restaking their reflectSOL (rSOL) for a given lockup period. Not only will this maintain native yield but it will also earn protocol revenue and decentralization bonds.

Stake SOL, Stake again and Compound Dollars.

The insurance restaking primitive uniquely enables network participants to not only earn Proof of Stake yields from Solana (SOL) but to Stake again (rSOL) in locked periods whereby the reward is both Solana (SOL) and Reflected US Dollars (rUSD).

Compound rUSD automatically by depositing into the Tokenised Revenue Distribution program and receive USDr - Compounding your Restaking Yield into Two-Sources of Protocol Yield. Learn more about Yield on Reflect