When you supply stablecoin to a cover liquidity pool (also known as vault), a special token called Proof of Deposits (PODs) is issued by the protocol. The PODs represent your proportional share of the vault. Note that each cover has a dedicated liquidity pool and unique POD. The PODs across liquidity pools are different smart contracts and thus non-interchangeable.
This documentation is being updated.
The protocol issues PODs when liquidity is added to the vault
Since the policy fees get automatically compounded to the liquidity pool, new liquidity contribution could result in less units of PODs being minted. For example, check the following transactions:
The contribution of 1223 DAI to the cover vault increases the pool liquidity. Because of the increased liquidity, the third transaction therefore emits proportionally equal but less units of PODs.
You will need to redeem the PODs with the vault contract to receive your proportional share of liquidity. The vault then burns the PODs sending back your liquidity. Ensure that you do not lose access because there is no way you can get your liquidity back without redeeming the PODs.
POD Staking Rewards
For Liquidity Providers
On top of the policy fee income, NPM rewards, flash loan interest, and other incomes received on the pool, you can also stake your PODs in the Neptune Mutual Pool to earn additional ROI in the form of the cover project's tokens.
The incomes generated by staking the PODs is called Shield Mining Rewards.
For Cover Creators
As a cover creator, you may want to attract and incentivize liquidity providers by offering your project's native token as a staking reward.