ILP - Insurance Pool

The Insurance Liquidity Pool (ILP) is designed to insure the SLP, while also building a moat to defend the protocol from potential defaults.

The main focal points of the ILP are:

  • To provide insurance to the SLP investments.

  • To provide up to a 90% investment, depending on the health of the ILP.

  • To allow LODA token holders to mint the Lodestar voting token by investing in the ILP.

  • To generate yield on the staked Loda through the Lodestar token.


Investment Token: LODA

Proof of Investment Token: LODESTAR

Cool-off Period: Each investment has a cool-off period (refer to terms)

Who Can Invest?

Anyone - There are no minimum or maximum investment caps.


  • ILP has no size limit.

  • ILP should maintain a ratio of 50% of the SLP.


The ILP function to insure the SLP in case of defaults, by providing partial insurance cover.


  • Revenue comes in the form of ILP fees.

  • Better returns per USD invested compared to SLP, however, less than the JLP.

  • People that provide USDC to the ILP pool in the case of imbalance will be provided with rewards - the longer the imbalance, the better the rewards.


Voting Power

In the case of governance votes proposed by the DAO, there is voting power provided to holders of all ILP investment positions. The voting power of each position depends on the amount of future staking days left until the maturity date. The power reduces the closer the position gets to maturity.

Future staking days left voting power is capped at 365 days, to avoid multi-year investments accruing too much power.

Cooling-off Period

This is the duration between deciding to withdraw your LODA by burning your LODESTAR.

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