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Insurance Fund

How to stake in the Strips Insurance Fund
The insurance fund ensures the smooth operation and continued robustness of our Strips Exchanges. The insurance fund is our first line of defense when the AMM is undercapitalised to pay traders. Based on our 800+ market simulations and 14,000,000 different parameter combinations, we did not encounter a situation where the AMM needed the insurance pool. However, in order to maintain the highest level of confidence and integrity of our markets, we have built the insurance pool to be a resilient and core pillar of our risk management system.

How does the insurance fund make money?

When a trader is liquidated by the auto-liquidation engine, a small fee is paid to the insurance fund. Additionally, the insurance pool receives 25% of all trading fees and 10% of AMM realised profits.

Staking in Insurance

Step 1 - Buy some STRP tokens

You can buy STRP tokens on Sushiswap or at a number of centralised exchanges:
Sushiswap (Ethereum): https://bit.ly/30hDvzm
Sushiswap (Arbitrum): https://bit.ly/3HUyjlu
STRP Contract (Ethereum): 0x97872eafd79940c7b24f7bcc1eadb1457347adc9
STRP Contract (Arbitrum): 0x326c33fd1113c1f29b35b4407f3d6312a8518431

Step 2 - Add STRP-USDC Liquidity on Arbitrum Sushiswap (app.sushi.com/add)

  1. 1.
    You will need STRP and USDC on Arbitrum for this step (bridge from Ethereum to Arbitrum here)
  2. 2.
    Go to https://app.sushi.com/add/ and change your wallet to Arbitrum network (learn how to connect to Arbitrum here)
  3. 3.
    Select STRP and USDC in the dropdown selections
  4. 4.
    Approve and add liquidity to Sushiswap and confirm the transactions in your metamask wallet
You must stake STRP-USDC LP on Arbitrum (as LP tokens staked on ETHEREUM WON'T BE ACCEPTED for staking)
Approve and add liquidity for STRP and USDC

Step 2 - Deposit LP tokens (app.strips.finance)

Visit https://app.strips.finance. Click on Liquidity. Then click on DEPOSIT under INSURANCE.

Step 3 - Enter deposit amount

Enter the amount you would like to stake and click DEPOSIT

Step 4 - Confirm transaction

Confirm the transaction in your wallet
In order to prevent large fluctuations in the liquidity of the AMM, there is a withdrawal fee of 2% if you withdraw liquidity before 7 days.