Agio Docs
  • โš—๏ธAgio protocol
  • Overview
    • ๐Ÿ‘จโ€๐Ÿ”ฌTeam
    • ๐ŸŽฅHistory
    • ๐Ÿ’กHow does Agio work
  • Product Guides
    • ๐Ÿช„How to use Agio
    • ๐ŸงชMechanism
  • Fundamentals
    • ๐Ÿช™$AGIO the token
      • ๐ŸงฒValue accrual for $Agio holders
        • Staking $AGIO to earn protocol fees in USD or ETH with a yield redirection mechanism
        • Sudden total claim
        • Shielding pools
  • ๐Ÿ“ŠTokenomics
  • ๐ŸŒSocials
  • Security and Decentralization
    • ๐Ÿ›ก๏ธTreasury covers
    • ๐Ÿ”ฌBad Coverage
    • ๐Ÿ”ญGood Coverage
    • ๐Ÿ‘‘Protocol Ownership
  • ABOUT
    • ๐Ÿ”ฐQ & A
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  • Eliminate bad coverage
  • Increase the size of treasury coverage
  1. Security and Decentralization

Good Coverage

Good coverage is a term coined by Agio. It means that the treasury supports fewer assets than it theoretically could provide -100% coverage for. Following, we present likely scenarios that could result in a good coverage :

If the price of $AGIO rises, good coverage begins to form as treasury capacity increases. The benefits of such a mechanism include:

Eliminate bad coverage

When good coverage begins to form, it can eliminate prior bad coverage. Suppose that the treasury was in a bad coverage state and supported 200% of assets, then if the price of $AGIO goes up by 100% this bad coverage would be eliminated because the treasury now supports all positions up to -100%.

Increase the size of treasury coverage

If there is no bad coverage to eliminate, Agio can increase its coverage capacity, thus letting more people deposit and increasing covered funds

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Last updated 2 years ago

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