v1 (en-US)
Neptune Mutual SDK
Covers
Definitions
Contract Creators
Anyone who has NPM tokens can create a cover contract. To avoid spam, questionable, and confusing cover contracts, a creator has to burn 1000 NPM tokens. Additionally, the contract creator also needs to stake 4000 NPM tokens or more. The higher the sake, the more visibility the contract gets if there are multiple cover contracts with the same name or similar terms.
Always refer to the Protocol Fee document for the latest information since the fees are configurable and can change.
Rewards
The contract creator will earn a steady income of up to 1% of all cover fees paid by the users. Initial contract creators will also earn additional 1% of the cover fees in NPM.
This added NPM reward is limited and comes from the Protocol Incentives allocation, as described in our token design.
About Reporting Questionable or Invalid Contracts
The governance system allows NPM holders to vote to invalidate and remove any cover contract.
- The staked NPM tokens of the contract creator will be burned.
- The users having non-expired covers can withdraw their cover fee.
- The liquidity providers can withdraw their staked NPM tokens, stable-coins, and cover fees.
​
Last modified 3mo ago
Copy link