You may have seen the phrase guaranteed payout in our documentation, website, blog, videos, and other materials.
It is critical that you grasp the distinctions between "dedicated" and "diversified" cover pools. Due to its complexity, we first planned to build "diversified pool" as the primary feature of version 2. However, we rolled up our sleeves and completed the "v2" feature in its entirety as part of the "v1" release.
Please keep in mind that the guaranteed payout only applies to dedicated cover pools. In order to cover a single dApp, a dedicated cover pool is created as a standalone product. It has no capital efficiency, leverage, or support for child products. Diversified cover pools, as opposed to specialized cover pools, may support and collectively cover a variety of "products" with extra leverage and capital efficiency.
Below are some important distinctions and similarities between "dedicated" and "diversified" cover pools:
|Triggered By||Incident Reporting||Incident Reporting|
|Product Model||Standalone||Multiple products|
|Child Covers||Not supported||Supported|
|Payout Model||Full payout||First come first serve, up to the maximum balance available in the pool|
|Policy Purchase From||Cover pool||Product pool|
|Liquidity Allocation||Single pool||Multiple products|
|Resolution Achieved Via||Staking||Staking|
|Personally Identifiable Info||Not collected||Not collected|
|Proof of Loss||Not required||Not required|
* the guaranteed payment is predicated on the Neptune Mutual protocol not being hacked.