Aegis Insurance Fund

The Aegis Insurance Fund is an integral part of the Aegis Protocol, providing a financial buffer to ensure the stability of the YUSD stablecoin. It is designed to cover any costs incurred during periods of negative funding rates, ensuring that YUSD is stable even in less favorable market conditions. The Insurance Fund mitigates the impact of market volatility, particularly in Bitcoin prices, by maintaining a delta-neutral position. This fund is transparently managed, with all details available for monitoring on the Aegis public dashboard.

We did stress test our model on the Insurance Fund size during different market conditions. More information can be found here: Insurance Fund Stress Study.