Safety Module

The Safety Module acts as a mitigation mechanism designed to absorb the impact of any unfortunate liquidity decline event within the protocol. It functions as an insurance module and adds an additional layer of security to the protocol. Users can deposit their LPO tokens, as well as other tokens accepted on the platform, including ETH, LINK, wBTC, and many others, to contribute to the ecosystem’s safety. In exchange for this contribution, users can earn rewards for ensuring safety in the form of „LPO” tokens.

To compensate for losses incurred in the event of an unfortunate incident, a percentage of the funds deposited in the safety module can be used. The safety module will consist of a diversified portfolio of assets to avoid creating selling pressure on the „LPO” token in the event of a liquidity decline. „LPO” token rewards from the safety module will be purchased and then distributed using multiple revenue streams within the Lipo Finance ecosystem.