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SuiPad Shield allows the ambitious and carefully selected projects to utilize such feature within their launch strategy, while also protecting SuiPad Investors from any tokens dump
Participating in launchpad IDOs often get you high reward but also associated with certain risk, hence we introducing SuiPad Shield to safeguard participants' principal capital, giving everyone a peace of mind.
How SuiPad Shield Works?
Currently in the market, most launchpads/IDO platforms do not have protection in place to safeguard users' principal capital against volatility when investing in newer crypto projects, making it an extremely high risk activity for IDO participants.
At SuiPad, we have engineered an Insurance feature to protect the user's principal capital. For example, if a user buy the IDO round of a launchpad project, the user can choose to add 15 % of invested funds to buy insurance. The insurance fee will then be sent to the SuiPad Shield Pool. The SuiPad Shield Pool will then cover any potential loss of the user's principal capital for the next 7 days - on the 7th day since the IDO launch, if the average peak price is lower than the IDO price, the SuiPad Shield Pool will cover the differences to the user, so the user's principal capital is well protected. On the other hand, if the project does well, the user's return will be infinity% - 15% paid in insurance costs.
Insurance Protocol Mechanism
- Launchpad participants can decide if they want to purchase SuiPad Shield
- All the insurance fee will go to the insurance pool directly
- The fund will be used to repay the loss of IDO investment After 7 days, DAO will calculate the average peak price of 7 days (UTC+0).
- If the average peak price dropped below the IDO price, the difference will be covered. If the insurance pool do not have enough funds to repay the debt, fund raised from project IDO will be used.
- If the insurance pool is not utilized, it will be accumulated for the subsequent launches.
IDO Price: $1
Allocation size: 500 usdc
Insurance fee: 75 usdc (15% of allocation size)
The 75 usdc will go into insurance pool.
After IDO, the average peak price of ABC after 7 days = $0.7
SuiPad Shield activated, (($1 - $0.7)*500 usdc) = 150 usdc claimable