ParaapeHow it works
Hold the coin, name the crash, get paid in USDG if the drop sticks.
Paraape is two sides of one market.
Buyers keep the memecoin and pay USDG for cover. Underwriters deposit USDG behind one coin and collect premiums. If the named crash is still there, the underwriters pay the buyer. If it is not, they keep the premium.
The path
The shipped keeper records the price. It does not call settle or release.
One coin, one pool
Every insured token has its own vault. USDG deposited on token A cannot pay a policy on token B. LPs deposit USDG only. They never deposit the memecoin.
A market can be opened by anyone once the pool exists, one side is the token, the quote is USDG or WETH, and a lock adapter attests that the liquidity is locked and deep enough. See Markets.
What you pick
The buyer picks three things:
- The drop. How far price must fall from the entry: 50, 60, 70, 80, 90, or 95 percent.
- The term. How long the policy stays on: 1, 3, 7, 14, or 30 days. This is not a crash window. A slow bleed pays the same as a fast dump if the drop is still there.
- The payout. How much USDG to cover, up to a cap set by the bag, the free LP capital, and the pool depth.
The underwriter picks a token and one drop. A milder drop they back can also fill a deeper policy. A deeper cell cannot fill a milder policy, because that LP did not agree to pay on a smaller fall. See Grid.
When it pays
Cover turns on 30 minutes after purchase. The entry price is the 5-minute average at that moment, not the price at the click and not a later high.
Someone calls settle. The contract checks that the current 5-minute average is still down by the bought drop, that the last samples agree, and that the buyer still holds the tokens. USDG is reserved. After 2 hours, release pays the buyer. A backing LP can challenge during that window. The buyer does not file a claim.
What it does not do
- It does not sell the bag for you.
- It does not pay a wick that recovers before the samples agree.
- It does not pay if the buyer sold the covered tokens.
- It does not use Dexscreener, GMGN, or a Chainlink memecoin feed as the trigger. Chainlink ETH/USD is only the WETH-to-USDG rate.
- The shipped keeper records prices. It does not settle or release for you.