Insurance really plays a role only when there isn't enough liquidity to return the tokens to liquidity providers and the purpose of insurance in this specific case is to protect the liquidity providers from impermanent loss

How insurance is structured :

It's a very simple and straightforward way so the first 30 days of you adding liquidity into the pool you get zero coverage because they don't want people to be putting in for 30 days, do some funny business get coverage and then leave.


So for the first 30 days you have zero insurance covered and then after 30 days you will have additional 1% coverage every single day until you reach the 100th day where you're covered 100% and then the rest of the days you'll always be covered for 100%.

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This is not financial advice. Information shared is found publicly on the internet. All analysis and opinions are my own. The purpose of sharing the information is for education and knowledge sharing. The information shared is accurate at the time of recording. Purchasing cryptocurrencies poses a considerable risk of loss. Past performance does not indicate future results.

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