What is Tortle Relief Fund and how does it work?
On DeFi shit just happens, technical bugs, exploits, and economical attacks plague the environment, making a lot of people losing not only their assets but their confidence in the ecosystem. That being the case, we wanted to create what we call Tortle Relief Fund.
When you finish a transaction on Tortle we will add a percentage of the extra fee that will go straight to the fund, in case some users lose funds cause of an issue on Tortle, the fund will be activated and will try to return the funds. The Relief Fund will be operated by a decentralized system of claims, a peer review that; against an incentive, and will evaluate all the cases.
This relief fund will be based on Tortle Tokens+Fantom, staking the entire allocation to generate APR.
A significant part of Tortle incentives Tokens will go to create this fund. The funds will be staked, auto compounding, and generating some APR that will increase the fund itself. Every time a user wants to get some insurance on a Tortle Combo Recipe we calculate 2 items:
- The composition of the operation in terms of LP/Farms and assets involved.
- The amount of the Recipe
Based on that the fund will decide if the Recipe can have coverage or not. Tortle team will generate a trust scoring for LP/Farms on Tortle and also for assets so we can evaluate the risk of every operation.
It might happen that the total sum insured gets bigger than the total amount on the fund, in that case, we will inform the user of the percentage of coverage we can assure him/her. If our actual funds only can give the total amount of users a 50% of their funds we will inform them, as market conditions change over time once we cannot assure we can cover the 100% the percentage will be expressed in a variable way (for example 35%-45%).
To mitigate risk we will create more than one fund, depending on the rating of the assets, so better assets and pools don’t get affected in case some other fail.
Once we have located what we call a catastrophic event, an event that affects more than X users and have a significant impact on the viability of any other Fantom Ecosystem project we will launch a proposal to all Tortle Holders, if it is approved the relief fund will be activated. Our team will analyze all the affected operations and refund all users on the fund LP Token, users can keep it or change it to another currency.
Only events labeled as catastrophic will be insured, network problems, bad investment decisions, or rugs will not be covered as of the moment.
Tortle Relief Fund is still a work in progress. Stay updated!
About Tortle Ninja
Tortle Ninja is a no-code decentralized financial tool that was built to enable retail investors, fintech, and crypto enthusiasts to create combined DeFi strategies.
Tortle users can create combinations of DeFi operations by linking the nodes and defining a strategy. You can split, create a limit, stop-loss orders, and even more complex strategies. Tortle will validate the operation results and the composition of the operation if it is valid or invalid.