Entity Insurance Fund (EIF)
EIF is the acronym for the Entity Insurance Fund which is a separate wallet in Entity's ESP system. The EFF uses an algorithm that backs the Rebase Rewards and is supported by a portion of the buy and sell trading fees accrued in the EIF wallet.
In simple terms, the staking rewards (rebase rewards) which are distributed every 15 minutes at a rate of 0.025% are backed by the EIF parameter, thus ensuring a high and stable interest rate to $ENTITY token holders.
3% of all trading fees are stored in the Entity Insurance Fund which helps sustain and back the staking rewards provided by the positive rebase.
- Avoiding flash crash through price stability
- Achieving longterm sustainability and future growth of the Entity Protocol
- Greatly reducing downside risk