Shentu Shield
What is Shentu Shield and how are they used?
Idea
As there are more and more hacks every year there must be a way to protect your assets.
For this reason crypto holders can purchase shield to protect their wallet from losses. This protection will cover the shield purchaser against hacks, bugs, contract issues, ...
This protection is backed by collateral providers. These collateral providers are CTK holders that staked their CTK and added their CTK to the Collateral pool for additional rewards.
Full description can be found on the official site : https://shield.shentu.technology/
Purchasing Shield
Through the Deepwallet a crypto holder can purchase protection for a specific crypto. The shield purchaser will pay a specified fee according to the shield and amount.
A purchased shield lasts for 21 days.
This protection will then be enabled for:
The specified crypto selected upon Shield purchase.
The specified Wallet address provided during Shield purchase.
The specified amount covered by the Shield.
The service cost is depending on the amount of protection purchased.
This protection will cover loss of assets due to:
A malfunctioning Contract.
Hacks.
Bugs.
Network attacks.
Other similar events.
This protection will not cover :
Scams like phishing and social engineering.
Loss of wallet due to forgotten passwords or keys.
Theft from employees, team members or other internally privileged person.
For example a rug pull.
Providing Collateral
Any CTK holder can provide Collateral. This collateral will be used to manage possible claims. Providing your CTK as collateral does add a risk but this also provides the collateral provider with additional rewards.
Risk
As mentioned providing collateral adds an extra risk, what does this mean exactly? Whenever a Shield purchaser was hacked and files a claim that was accepted, the funds to pay back the shield are taken from the collateral pool. This will be substracted from the collateral providers balance. So if there is a claim that is 1% of the collateral pool all collateral providers will lose 1% of their collateral balance.
To estimate the risk you can always compare the Shield Pool size vs the total shield purchased on the Shentu explorer : https://explorer.certik.foundation/
Rewards
All collateral providers will gain an extra reward. This consists out of the service fees paid by the shield purchasers and since v2.4 it also a percentage of the block rewards is spread over the collateral providers. All of this on top of your normal staking rewards.
Note that you must have your CTK staked to be able to provide your CTK as shield collateral.
Withdrawing your collateral will take 21 days to do so. In this time your collateral can still be used but you won't gain any rewards from it.
Wondering how to provide collateral, go here: Providing Shield Collateral
Verification of the Claims
The Security Council will conduct an independent investigation of submitted claims and publicly publish the results of the investigations. The Security Council is a non-voting entity with the purpose of investigating whether losses are trackable, provable, and reproducible. The analysis of the Security Council may be used as just once piece of evidence as collateral providers vote with their discretion on Claim Proposals.
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