What is Parametric Protection?

Unlike traditional insurance that requires claims and adjusters, parametric contracts pay out automatically when predefined conditions are met. If USDC drops below $0.98, you get paid. No paperwork. No disputes. Just math.

Why It Matters

Stablecoins are the backbone of DeFi, but they carry hidden risks. When USDC depegged in March 2023, billions in value evaporated overnight. DSRPT gives you a way to hedge that tail risk.

Instant Payouts

No waiting for claims approval. Oracle confirms the depeg, smart contract executes the payout. Done.

Tail Risk Hedge

Protect large USDC positions against black swan events. Sleep well knowing your downside is covered.

Fully On-Chain

No counterparty risk. No centralized intermediaries. Verify everything on Base.

Capital Efficient

Pay a small premium, get significant coverage. Typical cost: 0.25% for 30 days of protection.

Who Is This For?

🏦

DeFi Treasuries

“Our DAO holds $2M in USDC for operations. A depeg would be catastrophic.”

Protect your treasury reserves against stablecoin failure. Cover operational funds so a depeg doesn't halt your project.

🐋

Large Holders

“I've got $500K sitting in USDC earning yield. What if Circle has issues?”

Hedge your stablecoin exposure while maintaining liquidity. Keep earning yield, sleep better at night.

🔄

Liquidity Providers

“I provide liquidity to USDC pools. A depeg means impermanent loss on steroids.”

Offset potential LP losses during depeg events. The payout helps compensate for impermanent loss.

📊

Trading Desks

“We hold USDC as collateral for leveraged positions. A depeg could liquidate us.”

Protect collateral value during market stress. Avoid cascading liquidations from stablecoin instability.

The Process

Connect Your Wallet

Connect any Web3 wallet to access DSRPT on Base. The protocol runs entirely on-chain with no intermediaries.

Choose Coverage Amount

Select how much USDC exposure you want to protect. Coverage represents the notional value at risk.

Select Duration

Pick your protection period: 7, 30, or 90 days. The HazardEngine calculates risk-adjusted premiums using actuarial hazard curves.

Pay Premium

Pay in USDC. Premium = coverage × hazard rate × duration. A minimum floor (0.25%) ensures treasury sustainability even in calm markets.

Continuous Oracle Updates

The OracleAggregator pulls real-time USDC/USD prices from Chainlink. A keeper daemon updates on-chain state every 5 minutes.

Parametric Payout

If USDC drops below the $0.98 strike price, the PolicyManager calculates and executes payouts automatically. No claims, no delays.

Key Features

🔗

Chainlink Oracle Integration

OracleAggregator pulls from Chainlink USDC/USD price feeds with configurable staleness thresholds for reliable, manipulation-resistant data.

📈

Hazard Curve Pricing

HazardEngine uses actuarial hazard curves that scale premiums based on current price deviation from peg. Higher risk = higher premium.

🏦

Fully Collateralized Treasury

TreasuryManager holds USDC reserves to back all active policies. Protocol solvency is verifiable on-chain at any time.

⚙️

Keeper Automation

KeepersAdapter enables automated oracle updates and policy settlements. The Risk Engine daemon runs 24/7 on distributed infrastructure.

Payout Example

Scenario

Coverage: $10,000 USDC
Duration: 30 days
Strike Price: $0.98
Premium: $25 (0.25% floor)
USDC Drops to: $0.95

Your Payout

$300

($0.98 - $0.95) × $10,000

Payout = (strike - spot) × coverage

Protocol Architecture

OracleAggregator

Aggregates Chainlink price feeds with configurable staleness thresholds. Stores snapshots for policy settlement.

HazardEngine

Computes risk using hazard curves calibrated to historical depeg events. Outputs premium rates and trigger conditions.

PolicyManager

Manages policy lifecycle: creation, premium collection, settlement, and payout distribution.

TreasuryManager

Holds protocol reserves. Ensures full collateralization of active policies and processes payouts.

Frequently Asked Questions

What triggers a payout?

When the Chainlink USDC/USD oracle reports a price below the strike price ($0.98), your policy is eligible for payout. The payout is calculated as: (strike price - current price) × coverage amount.

How quickly do payouts happen?

Payouts are triggered automatically by the keeper network within minutes of a depeg event being confirmed on-chain. No claim forms, no waiting period, no human approval needed.

What if USDC re-pegs quickly?

Payouts are based on oracle snapshots. Once the trigger condition is met and recorded, the payout is locked in. Subsequent price recovery doesn't affect policies that already triggered.

How are premiums calculated?

Premiums use actuarial hazard curves that factor in coverage amount, duration, and current market conditions. There's a minimum floor of 0.25% to ensure treasury sustainability.

Is the treasury fully collateralized?

Yes. The TreasuryManager holds sufficient USDC reserves to cover all active policy liabilities. Collateralization is verifiable on-chain at any time.

Can I cancel my policy early?

Policies are non-refundable once purchased. This ensures the protocol can maintain adequate reserves and prevents adverse selection during volatile periods.

Why Base and not Ethereum mainnet?

Base offers lower transaction costs while maintaining Ethereum security through L2 architecture. This makes smaller coverage amounts economically viable.

What oracles do you use?

We use Chainlink's decentralized oracle network for USDC/USD price feeds. Chainlink is the industry standard with proven reliability and manipulation resistance.

Ready to Get Protected?

Start protecting your USDC holdings in less than 2 minutes.

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