Takadao Docs
Takadao Whitepaper v2 (tDAOs)
Takadao Whitepaper v2 (tDAOs)
  • Introduction
  • PART A. BACKGROUND
    • 01 - The Insurance Industry
      • Origins of insurance: Mutual protection and risk-sharing
      • The rise of the modern insurance industry
      • The insurance industry today
      • Key Consumer Complaints Against Insurance Companies
    • 02 - Introducing Takadao
      • Takadao: Addressing Consumer Complaints and Industry Challenges
      • Basics of the Blockchain
      • “Taka DAOs (tDAOs)” vs. Centralized Insurance Companies
  • PART B. TAKADAO: THE DAOs
    • 03 - Takadao Technology
      • The Takadao technology stack
      • tDAOs’ user journey
        • Risk assessment and KYC
        • Contribution
        • Membership Credits
        • Get a Payout
        • Redistribution of Surplus
        • Participate in Governance
    • 04 - Underwriting & Risk Management Algorithm
      • Introducing Dynamic Underwriting
        • Absence of capital providers
        • Fluctuating reinsurance protection
        • Using data in real time
      • Takadao dynamic underwriting: A closer look
      • Risk and the Benefit Multiplier (BM)
        • Individual risk and the Base Benefit Multiplier (B.BM)
        • Portfolio risk and the Benefit Multiplier Adjuster (BM.A)
      • Dynamic Underwriting Reserves
        • Calculating the Benefit Multiplier Adjuster (BM.A)
        • The Dynamic Reserve Ratio
        • How underwriting surpluses are calculated
    • 05 - tDAOs’ Tokens aka Membership Credits
      • Membership Credits
      • Make a contribution, receive Membership Credits, become a member
      • Membership agreement
      • Redeem/burn Credits, exit the DAO
      • Credits determine insurance benefit
      • Discontinuing membership before contract maturity
    • 06 - Benefits Payout Protocol
      • Decentralized Benefit Payout Management (DBPM) - A multistage process
        • Stage One - Document Review
          • Pre-verification
          • Manual Verification
          • Stage One Results
        • Stage Two - IRL Verification
          • Stage Two Results
        • Stage Three - Professional Review
  • PART C. TAKADAO: THE COMPANY
    • 09 - The Takadao Vision
      • Vision & Mission
      • Business Model
      • Shariah compliance
    • 10 - The Takadao Token (TAKA)
      • Token Utility
        • TAKA for Fees
        • TAKA for Staking - Reprotection Pool (rePool)
        • TAKA for Rewards
        • TAKA for Governance
      • Token Supply and Distribution
        • Token Supply
        • Token Allocation
        • Token Emissions Schedule
      • Value Accrual and Price Stability: Sources of Token Demand
        • Buy Back and Burn (BBB)
          • Schedule for BBB
          • Mechanism for BBB
        • rePool Staking
          • Benefits of rePool
          • Distribution of rePool yield
          • rePool Loan Support to tDAOs
          • tDAO to rePool Loan Repayment Modalities
        • Lock-up and Vesting Schedules
  • References
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  1. PART C. TAKADAO: THE COMPANY
  2. 10 - The Takadao Token (TAKA)
  3. Value Accrual and Price Stability: Sources of Token Demand
  4. rePool Staking

rePool Loan Support to tDAOs

When a tDAO’s performance falls below its rePool support level, the funds locked in the rePool and made available to Takadao to provide a 0% interest loan to the tDAOs to increase the Benefit payment. The rePool funds cover part of the shortfall.

For example, if the threshold is 75% and the rePool cover is 60%, for a Benefit of USDC 10,000 with initial BM.A of 70%, the rePool covers (75%-70%) x 60% x 10,000 = 300, giving a total Benefit of 7,300 and actual BM.A of 73%.

Amount of benefit due

BM of 400, 25 USDC Contribution, gives max Benefit of 10,000 USDC

Current tDAO health (BM.A)

70%, which would give a Benefit of 10,000 * 0.70 = 7,000 USDC

rePool Threshold

75%, which gives applicable rePool cover = 0.75 - 0.70

rePool Cover %

60%, which means the rePool covers 60% of the Threshold Amount

rePool Cover

10,000 x (0.75 - 0.70) x 0.60 = $300

Benefit and final BM.A

Benefit is 7,000 + 300 = $7,300, which gives a final BM.A of 73% (increased by 3%)

rePool Loan

Loan to the tDAO = $300

Loan amounts are denominated in USDC. When a loan is triggered as described in the previous section, the equivalent amount of TAKA is removed from rePool and swapped for USDC. The USDC is then transferred to Takadao which is in turn transferred to the tDAO in order to make the Benefit payment.

While this is a loan from the perspective of the TAKA holder, the required TAKA are taken from the pool and sold in the market to generate the USDC made available to Takadao to transfer to the tDAO.

In addition, the presence of the rePool helps tDAOs in generating more surplus. Each tDAO looks at the rePool size in USDC (current TAKA market value) and takes a percentage of this (60%) when calculating the contribution deficiency risk, which is a main element of the surplus calculation. The higher the value of the staked TAKA in the rePool, the smaller this contribution deficiency risk becomes, and more of the earned Benefit Reserve becomes surplus. This is another key benefit of the rePool for the tDAOs and something that cannot be achieved by each tDAO alone.

PreviousDistribution of rePool yieldNexttDAO to rePool Loan Repayment Modalities

Last updated 9 months ago