FAQ

Uninsurance

1. What is Uninsurance?
   1. Uninsurance is the term for Ease.org’s new DeFi Native Coverage mode. It doesn’t require premiums or entering into a contract. Perpetual coverage of your tokens’ real time value.
2. Sounds too good to be true, how is that possible?
   1. When you enter the Ease ecosystem, you are depositing your asset into a vault that is connected to every single other vault. This ecosystem allows the assets to be collateral for themselves. Instead of a user paying a contract premium, if a hack occurs in one vault, the other vaults have a small portion liquidated to cover that loss. Spreading it proportionally through the ecosystem.
3. Why use Ease over other coverage protocols?
   1. Current methods are all based in a traditional, antiquated style of coverage. You pay money to a company with large funding. As long as you continue to pay, you continue to be covered. If your loss meets their criteria. This model puts a focus on profits rather than security. Underwriters take on the risk in a gamble to hope they don’t need to pay out claims in order to continue earning profit on premiums. This model also makes it extremely hard for competitors to enter the business as underwriters need to amass large amount of capital to cover loss events
   2. Ease doesn’t claim premiums. The only time you pay out is when a hack occurs and part of your asset is liquidated to cover a loss event. This payment only goes to securing the ecosystem, rather than lining the pockets of middlemen. This also ensures the user only ever pays exactly what they need rather than a monthly cost, ad nauseum. Research shows this to be significantly less based on the past history of DeFi hacks. For more info, see the whitepaper.
   3. RCAs don’t need to amass capital. Since assets in the ecosystem are the collateral for the ecosystem, the available coverage increases as the ecosystem grows. Increased demand in a traditional model will require an increasing size of underwriter funds generated from elsewhere.
4. What about a Black Swan Event?
   1. This type of event is covered in our page on Competitive Differences
5. What are the future plans for Ease?
   1. Ease wishes to cover every cent in DeFi. With the nature of the Ease uninsurance ecosystem, that is a possibility! We will continue to add more vaults and protocols to expand this novel coverage to every corner of DeFi.

Safety Rankings

1. What is a Safety ranking?
   1. Safety ranking of a vault determines the asset value that is to be liquidated in the event of a hack. The highest rated vault loses the least amount of funds through liquidation in the event of a hack on another vault.
2. How do I contribute to a safety ranking?
   1. Users can help determine the safety rankings of each vault by staking their $gvEase (Growing Vote ease, received by depositing $ease tokens. See the gvEase announcement here) to the vault of their choosing.
3. How is the safety ranking calculated?
   1. The full documentation on safety rankings will be released closer to launch of the $ease tokens.

Farming

1. What is the rationale for farming a vault?
   1. To spur growth of the protocol and increase ecosystem diversity. In the next phase we will allow users to deposit their Ez-tokens into a farming contract. This contract will allow them to earn weekly rewards in Armor tokens.

For more information see the article on Farming Rationale.

Governance

1. What does the DAO decide?
   1. The DAO is an integral part to the Uninsurance ecosystem. It handles many responsibilities, from liquidation procedures to disbursement of armor tokens.

See our article on Governance and DAO for full information on the responsibilities.

Update: the gvEase tokenomics have been announced. See the gvEase announcement here, which also contains important info about governance.

Liquidation and Hacks

1. What happens when a hack occurs?
   1. Admin freezes a reserve amount for each vault. This amount will be unavailable for withdrawal.
   2. Admin sets amount to be liquidated from reserve amount. This amount will be unique to each vault, based upon safety ranking and total loss from the hack.
   3. DAO votes to confirm the liquidated values for the vaults. On confirmation the reserve value is set to 0
   4. Users are now able to buy liquidated assets from each vault, the proceeds of which will be used to refund value lost to the hack.

For more information see the in depth article on Liquidation Procedures.

Tokenomics

1. Is there an Ease token?
   1. The $ease token has launched. It utilizes our newly developed gvToken tokenomics model. See the gvEase announcement and details here. 
2. What do I do with my Armor tokens?
   1. Don’t worry! A swap page is available for all users to swap Armor directly into the new token.
3. What about vArmor?
   1. You can swap directly from vArmor to $ease and even $gvEase. You will not need to worry about changing over vArmor into Armor first.
4. Is there any use for the $Armor tokens?
   1. No. The Armor DAO is no longer functional and has been replaced by the Ease DAO. There is no more Armor farming and $Armor that has been deposited for vArmor no longer grows.
      The sooner you swap your $Armor and $vArmor for $ease the better as your $gvEase will grow.

For more information see the article on Tokenomics. See the gvEase announcement and details here.