TLD Whitepaper
  • Part I: What is The LifeDAO?
    • Introduction
    • Mission
    • Background
      • Islamic finance and insurance
      • Why is conventional insurance not shariah-compliant?
      • Takaful, an Islamic alternative to conventional insurance
        • Takaful vs. Conventional Insurance
        • Takaful in light of the Shariah
    • The LifeDAO: Inspired by Takaful, native to the blockchain
      • Two Funds, Two Entities
      • Risk, Solvency and the Benefit Multiplier
      • Shariah compliance of TLD
    • The Takadao Protocol
      • Takadao’s Technology Stack
      • Takadao Reprotection Pool
  • PART II: The LifeDAO Membership
    • Member Journey
    • The LifeDAO Membership
      • Membership Benefits
      • Membership Privileges
      • Benefit 1: Benefit Payout
      • Benefit 2: Surplus Distribution
      • Benefit 3: Governance Rights
      • Privilege 1: Verifier Incentive Program (VIP)
      • Privilege 2: Contributor Committee
      • Privilege 3: TAKA Token Airdrops
      • Allocation of Membership Contributions
      • Benefits Payout Management
      • Governance and the Contributor Committee
      • Contributor Functions
        • Screen Proposals
        • Endorse and Advocate for Proposals
        • Implement Proposals through Multisig
      • The LifeDAO Investment Pools
        • Investment Conditions
        • Deposit and Withdrawal Mechanisms
        • Governance
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  1. Part I: What is The LifeDAO?
  2. The Takadao Protocol

Takadao Reprotection Pool

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Last updated 9 months ago

  • Reinsurance for the tDAOs is replaced by a Reprotection Pool (rePool) that enables Takadao to make a 0% interest loan to any tDAO that experiences unusually high loss ratios caused by a catastrophic event.

The rePool is an innovative alternative to traditional reinsurance funds within the Takadao ecosystem, utilizing the TAKA token as its native currency. It allows the Takadao community to engage in "reprotection" of Takadao powered DAOs (tDAOs) like TLD while earning yield. Individual tDAOs cannot build external reserve pools independently, but the rePool facilitates this collective reserve accumulation.

TAKA token holders contribute to the ecosystem by locking up their tokens for a specified period, which helps stabilize the token's price. In return, Takadao distributes a portion of its revenue as yield to these stakers. The rePool also serves as an external reserve pool, providing additional funds when tDAOs face unexpectedly high loss ratios. This mechanism complements the tDAOs' Benefit Multiplier Adjuster (BMA), which adjusts reserves and benefits for optimal fund solvency.

If a tDAO's performance drops below the rePool support threshold, the rePool allocates funds to Takadao to cover part of the shortfall, providing a 0% interest loan that the tDAO repays over time if its performance improves. This setup ensures that tDAOs have a safety net beyond their self-adjusting reserves, enhancing overall stability and resilience in the Takadao ecosystem.

For more detail on the rePool and the TAKA token check out the Takadao Whitepaper

here