ParaapeUnderwrite
Deposit USDG on one coin and one drop. Premiums come to you. Payouts come out of you.
Open Underwrite, pick a token, pick the drop you will pay, and deposit USDG. You receive shares in that drop's cell. Shares are the claim on the cell's assets, in the style of an ERC-4626 vault.
What you are selling
You agree to pay if price falls at least that far from a buyer's entry. You do not pick the buyer's term. Term only sets when their policy expires and how the premium is sized.
A cell backs a policy only when the policy's drop is at least as deep as the cell:
| You deposited at | Can fill a 90% policy | Can fill a 70% policy | Can fill a 50% policy |
|---|---|---|---|
| 50% | Yes | Yes | Yes |
| 70% | Yes | Yes | No |
| 90% | Yes | No | No |
Fill order is the strictest eligible cell first, so capital that only pays on deep crashes stays available for those policies.
Locked and free
Every USDG of coverage is locked 1:1 until the policy expires, is settled, or is voided. There is no leverage. You can withdraw the unlocked part at any time. A payout reduces the cell's assets and is shared by share holders.
Premiums accrue linearly from activeFrom to expiry. If nothing triggers, the premium stays in the cell. If it triggers, the reserved payout leaves the cell.
Opening a market
If the token has no vault yet, a deposit on Underwrite can call createMarket when the pool is locked and deep enough. DeployMemePool creates that pool and stops before createMarket, so the first underwriter opens it.
One market per token. The price source is fixed for the life of that vault. A new factory does not upgrade an old vault.