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$STALL staking and first loss

First-loss capital in front of underwriters, premium share and governance.

$STALL is designed to be staked as first-loss capital in front of underwriters. Stakers take the first loss when a tier is triggered. In return, they earn a share of premiums and govern the protocol's parameters.

The first-loss position

Staked $STALL sits in front of a tier's vault. When the tier is triggered, payouts are absorbed by the first-loss capital first, up to its full amount. Only the remainder is paid from the vault, pro rata across underwriters.

capacityfirst-loss ($STALL)vault assets (USDC, underwriters)cover outstanding≤ capacitya payout1 · first-loss absorbs first2 · vault pays the rest, pro rataevery cover in a tier triggers at once, so the tier must be able to pay all of it together
fig.Not to scale. Each tier's capacity is its vault assets plus staked first-loss capital. Payouts are absorbed by first-loss capital first.

First-loss capital also counts towards a tier's capacity. Cover outstanding in a tier can never exceed its vault assets plus the first-loss capital staked for it, so more stake allows more cover to be sold against the same vault assets. See the capacity rule.

What stakers earn

Stakers receive 5% of premiums, which is half of the 10% protocol fee. The other half goes to buy and burn of $STALL. For a 400 USDC premium, 20 USDC goes to stakers; see Fees.

What stakers can lose

A staker can lose their full stake in a single halt. In example D, first-loss capital with an illustrative value of 100,000 USDC absorbs 100,000 USDC of payouts, against 6,600 USDC of fees earned in the period: a net result of −93,400 USDC.

Stakers also carry the market risk of $STALL itself; see $STALL value.

Valuing staked $STALL

Payouts are made in USDC, while first-loss capital is staked $STALL. The method for valuing staked $STALL against USDC liabilities, which determines how much capacity a stake provides, has not been finalised. It will be set before launch and published in these docs.

Until then, these docs and the simulator express first-loss capital as a USDC value, for illustration only.

Governance

$STALL stakers govern:

  • Tiers: which trigger tiers exist, and their thresholds.
  • Rates: the premium rate for each tier.
  • Oracle configuration: which feed is used and how its rounds are interpreted.

The protocol fee and its split are also subject to governance. These docs do not specify quorum, timelock or voting procedure. Stakers' interests are not identical to those of cover buyers or underwriters; see governance risk.

Supply, allocation and launch

$STALL supply, allocation and launch date are to be announced. There is no contract address, no price and no way to buy $STALL. The only official announcements will come from x.com/stallbase (opens in a new tab). Treat any token, address or sale presented as $STALL elsewhere as unofficial.

Nothing on this page is financial advice.