Glossary

A list of frequently used terms and their definitions

General Terms

Active Claims - Claims that are in the process of being voted on. Voters evaluate the evidence provided by Policyholders and decide on the validity of the Claim.

Active Coverage - The cumulative value, expressed in USDT, of all the currently active policies that the Policyholders have bought against a particular Policy Book.

Appeal - Re-examining a claim that has already been decided. In the Appeal process, the claim is evaluated only by Trusted Voters with high reputation scores.

Capacity - The current maximum obtainable Policy Size for a particular Policy Book.

Capital Pool - Smart contract that manages USDT deposited in all the Policy Books within the DEIN Ecosystem. Earns profit via DeFi Yield Generator.

Claim - Request made by the Policyholder to the DEIN DAO to receive compensation for the Coverage Event.

Claimant - Policyholder that has submitted a Claim or an Appeal.

Claim Amount - The amount of money that the Claimant is asking for. This value should be supported by the evidence provided by the Claimant and is always equal to the Claimant's Policy size.

Collateral - Assets (USDT) provided by an Underwriter/Demand Investor to a Policy Book/Demand.

Compounded Liquidity - Additional Collateral provided by the Compounded Pool to carefully selected Policy Books.

Coverage Event - An event specified in the Policy's terms, which qualifies the Policyholder to make a Claim.

DEIN Native Staking Contract - Smart contract allowing users to stake their DEIN tokens for a certain period. The rewards are based on the amount staked and chosen lockup duration.

DEIN Native Staking NFT - An ERC-1155 issued as proof of staking DEIN. It allows users to accumulate rewards from the Reward Pool. If locked in the Voting Contract, the user gains the right to vote on Claims.

DEIN NFT Bond - A ERC-1155 non-fungible bond issued as proof of ownership of DEINxCover staked in the DEINxCover Staking Contract.

DEIN token - The native token of the DEIN ecosystem.

DEINxCover token - A fungible yield and risk-bearing token that represents a USDT deposit in any Policy Book. (x stands for the Policy Book's name)

DEINxCover Staking Contract - Smart contract that holds staked DEINxCover tokens and provides Underwriters with additional DEIN rewards. As a token representation user receives DEIN NFT bond.

Demand - A specific Policy request created by a user, outlining terms and premiums

Demand Creator - The user who initiates demand creation, setting conditions & premium and becoming a Policyholder after validation.

Demand Investor - User that has provided collateral for any Demand.

Discount - Reduction in the original price of Policy's Premium, offered to Native Stakers upon reaching certain staking thresholds.

ETH/DEIN Uni V2 token - Uniswap V2 Liquidity Pool token issued to the users in exchange for providing DEIN liquidity on Uniswap. Can be further staked in the DEIN LP Staking Contract in exchange for DEIN rewards.

LP Staking Contract - Smart Contract allowing for staking the Uniswap v2 LP tokens, or providing DEIN and ETH in equal worth in exchange for additional rewards.

LP Token - ETH/DEIN Uni V2 token

Native Staker - User who has staked their DEIN tokens in the Native Staking smart contract.

Native Staking position - This represents an individual's ownership of staked DEIN tokens and is symbolized by a DEIN Native Staking NFT, granting voting and reward eligibility.

Payout - The agreed-upon amount determined by the DEIN DAO as compensation for the Claimant upon the acceptance of their claim.

Policy - An agreement between a Policyholder and Underwriters that offers the right to make a claim when faced with the Coverage Event.

Policy Book - A pool of funds controlled by a smart contract that has been assigned to a specific project or platform. It can be underwritten in exchange for rewards or used to purchase a policy.

Policy Size - The maximum amount specified in the policy, determining the limit of compensation available for a claim.

Policyholder - A user that holds a Policy, for a specific Policy Book, entitling them to the right to make a claim in the event of a Coverage Event.

Premium - The amount paid, or that is required to be paid, for a specific Policy. It's based on a number of factors.

Reputation Level - A DEIN user’s level of reputation; it increases or decreases based on how accurately a user assesses claims. The Reputation Score starts at 1.0x and can go as high as 3.0x, and as low as 0.1x.

Reward Pool - A set amount of DEIN tokens designated to motivate and incentivize DEIN users. Distribution rates are updated monthly.

Required Collateral - The amount of funds the Demand Creator asks the Demand Investors for in their Demand.

Saturation - Dynamic relationship between DEINxCover tokens and USDT within a policy book. This ratio can change due to premium payments or claim payouts, influencing the value of DEINxCover tokens in relation to USDT.

A saturation ratio of 1:1 means that 1 DEINxCover token is equivalent to 1 USDT, and a ratio of 1:0.95 would signify that 1 DEINxCover token is worth 0.95 USDT.

Staking power (Cx) - Represents the value of a Native Staking position, impacting the rewards received. It's determined by the number of staked DEIN tokens and a multiplier associated with the NFT lockup duration.

Treasury - A reserved fund of DEIN tokens that serves as a financial resource for the project's ongoing development and growth. It's managed by the DEIN team (and later the DAO), and its purpose includes funding initiatives, partnerships, buybacks, and other strategic activities to enhance the platform's ecosystem and value.

Trusted Voter - The top 15% of active voters by Reputation Score.

Utilization Ratio - The relation between the Active Coverage and the Collateral in the Policy Book (Active Coverage divided by Collateral). The higher the Utilization Ratio, the more expensive the Policy).

For example, if 400 USDT of Active Coverage is reserved out of 1,000 USDT collateral in Policy Book A, the Utilization Ratio is 40%.

Underwriter - A DEIN user that provides collateral into a Policy Book.

Underwriter's Yield - Yield that the Underwriter is earning in exchange for bearing the risk and providing Collateral to a given Policy Book. This accounts for 20% of the Premium (80% for non-whitelisted pools). Underwriters can choose to further stake their DEINxCover tokens in exchange for additional DEIN rewards.

Voters - Native Stakers that have locked their Native Staking's NFTs to vote on Claims.

Voting Contract - A smart contract that facilitates the Voting process for Claims. It holds the locked DEIN Native Staking NFTs of users, which grants them voting rights.

Voting power (User's) - Determines the weight of the Vote. It's calculated based on the cumulative value of User's Native Staking NFTs locked in the voting contract and the User's Reputation Level. It grows sublinearly.

Voting power (NFT's) - Voting value of a singular DEIN Native Staking NFT. It's determined by the chosen duration, which directly corresponds to a Voting Multiplier.