Shield Mining Rewards Update #2

Since our launch over 2 weeks ago, we now have over $24 million of coverage minted across 14 DeFi protocols! In this time, we have observed some unintended economic effects that have affected the price of coverage, mainly the price of coverage is too expensive. Most, if not all, CLAIM tokens annually cost more than 20% to buy, which is a direct effect of the lucrative shield mining rewards.

The Problem

As shown above, the APY for the CLAIM pools is significantly higher than the NOCLAIM pool

The Solution

Note: this adjustment has no effect on liquidity providers in both CLAIM and NOCLAIM Balancer pools since the total allocated rewards between the 2 pools will not change.

The Goal

Projected APYs with implemented change and assuming CLAIM and NOCLAIM priced at $0.05 and $0.95 respectively



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