Introducing the Pre-diabetes in Sugaryield.com (Part 1)
High strike, low strike vaults
If you have a sweet-tooth for crypto assets and you are eagerly looking for advanced financial solutions in the DeFi fraternity to diversify your portfolio and get your digital assets medically insured; then look no further because this article is for you!
What is SugarYield.com about, and how does it help me? 👀🍭
SugarYield.com is a DeFi platform for medical insurance that enables third-party stakeholders to anticipate the performance of underlying tagged assets based on their medical histories. Prognosticators can adopt a number of stances in their forecasts and yield passive returns based on their examination of the assets’ health. SugarYield Medi-Insurance platform provides a variety of financial services such as lending, borrowing, hedging, and speculative trading of various crypto assets; specifically major stablecoins that make up 17 percent of the total cryptocurrency holdings.
Trick or Treat? 💉 or 🍬
The volatility of cryptocurrencies is undeniable. With that being said, it takes a lot of practice and a keen eye for crypto movements to draw a conclusion about the future movement of crypto assets. Furthermore, the most significant factor in this evaluation is the access to unfiltered information and a well defined financial plan to navigate through the movements of the market. Therefore, if you are capable enough to make sound Medi-financial decisions, then there is ample opportunity for you to get unlimited treats on Sugaryield. Now, the question arises how? For that, I will be explaining Sugaryield’s products in the next section.
What is Pre-diabetes
The pre-diabetes vault functions by utilising a sugary-catastrophy connection (SCP). Here the SCP bond is a vital financial component that pays users for thoroughly researching and analysing the health of a pegged crypto asset. This bond compensates users who appropriately assess the health of the underling asset. By depositing BNB and obtaining $SUGAR tokens, users may also hedge against the pegged assets. The Pre-diabetes vault is also the place where you will be deciding your stance of being, Pro-sugar or Anti-sugar, meaning that you will be getting a chance to decide to buy or to sell medical-insurance for your desired pegged crypto assets.
How Pre-diabetes work?
Assume a user is concerned about a certain stablecoin “USDT” deviating from its market pegged value. They have the option of putting a portion of their BNB into the SugarYield Sugar vault as collateral. Sugar, in exchange, would gain in value if the stablecoin “USDT” de-pegged from its pegged value. And the user will be able to earn money through the deviations.
Breaking down the Sugar
The Pre-diabetes vault is further divided into two different vaults, that represents the buying and selling of Insurance. In simpler words, that represents your stance in the trade. The two vaults that you will be coming across are
- Caramel Vault: represents hedging against a particular pegged asset
- Saltish Vault: represents selling of insurance, (Pro-risk) position
The Saltish Vault
Users desiring exposure to the depeg risk market would deposit in the Saltish (Pro-Risk) vaults, serving as a depeg insurance underwriter. Depositors receive a pro-rata cut of the premiums from Caramel vault deposits, so generating a market for Caramel (Hedge) vault depeg protection.
What happens if Saltish vault does not de-pegg
Saltish vault depositors receive a share from the Caramel deposits
What happens if Saltish vault does de-pegg
- Saltish vault depositors receive a share from the Caramel deposits
- Saltish vault depositors transfer their funds to the Caramel deposits
The Caramel Vault
Users that want to hedge against volatility in pegged assets would put their money in the Caramel vaults. Their deposit serves as an insurance premium, entitling them to a pro-rata portion of the Saltish vault deposits in the case of a depeg.
What happens if Caramel vault does not de-pegg
Caramel vault depositors transfer their paid up premiums to the Saltish vault depositors
What happens if Saltish vault does de-pegg
- Caramel vault depositors transfer their paid up premiums to the Saltish vault depositors
- Caramel vault depositors receives a share of Saltish vault depositors
The detailed breakdown of the two vaults is discussed in our technical whitepaper.
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