Market Makers(MMs) begin the process by depositing collateral to cover a product. Two types of Fungible tokens will be offered to the Market makers in exchange for their deposit. The tokens allow permissionless and non-KYC coverage which is an effective feature of this system. The protocol allows users to stake collateral to mint CLAIM tokens(redeemable if an exploit occurs) and NO CLAIM tokens(redeemable if no exploit occurs).
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