SAFU value proposition

SAFU revolutionizes the financial insurance landscape by creating the first self-repaying insurance in financial history, combining restaking primitive with yield-bearing tokens. This enables a safer version of any asset.

Current Insurance Landscape

In DeFi, the market suffers from a lack of scalability, liquidity, and effective pricing models.

In the whole financial history (both DeFi and TradFi) you had always required a significant capital commitments upfront—creating barriers and inefficiencies....SAFU changes that:

• No Capital Upfront: For first time in TradFi & DeFi history, you don not need to pay $ upfront to buy insurance.

• Capital Efficiency: Take advantage of DeFi money legos while getting the best risk adjusted yields.

• Reduced Opportunity Cost: You have a liquid receipt token of your insured token.

• Enhanced Scalability: Expands potential to meet growing demands.

• Transparent and Fair Pricing: Ensures fairness through market-driven mechanisms.

For instance, you can hold sUSDe from ethena which has a current yield of 20% and sacrifice 20% of that yield in exchange for having a “fallback” in case the solvency of Ethena is somehow affected.

• Restakers who opt into Ethena will act as the safeguard in case of a depeg in exchange for the extra yield generated by the underlying (Ethena) while keeping their upside in ETH or BTC.

• Coverage holders hold safuUSDe, a safer version of Ethena's sUSDe which has some fallback on non-correlated assets and instead of yielding 20%, yields 15%.

To demonstrate how this works, we portray an example with Ethena and EtherFi and later we show how a stablecoin (safuUSD) could be built on top of SAFU infrastructure.