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.