Solace owns its underwriting pool, underwrites the coverage, and pays the claims. Policyholders can be sure that our underwriting capital always will be there for them.
Solace raises underwriting capital through bonds, where users exchange their capital for vesting $SOLACE tokens at a discount. This decouples the underwriting risk from stakers, so they don’t need to worry about their capital being liquidated after an exploit.
$SOLACE facilitates two primary functions. First and foremost, it is a mean of payment for insurance. Although we do allow policyholders to use stablecoins, those ultimately get traded for $SOLACE.
Second, $SOLACE can be staked or locked to receive a share of the revenue that the protocol generates and partake in the governance of Solace. Ultimately, the value generated for investors is derived from Solace’s cashflows, success as an underwriter, and the DAO’s balance sheet.
Earn revenue from staking and never worry about the underwriting risk. It falls onto the protocol-owned pool.
Each staked $SOLACE gives you one vote in the DAO, with a maximum 4x multiplier through token locks.
Earn more $SOLACE (up to 2.5x) and voting rights (up to 4x) through locking your stake into a safe.
Staked $SOLACE provides you with exposure to policy sales, underwriting pool investments, and $SOLACE emissions.