Token Model

The Safura protocol includes a Ratcheting Automated Market Maker (RAMM) for minting and redeeming $SAFU.

RAMM is a two-pool system built on the Capital Pool, ensuring claims are payable during major loss events. It balances ETH inflow/outflow, $SAFU staking, investment allocations, and asset-liability management through an automated mechanism.

Members can use assets in the Capital Pool to underwrite cover products and vote on investment allocations.

Ratcheting Automated Market Maker (RAMM)​

The RAMM model consists of two virtual one-sided Uniswap v2-style pools: Below Pool and Above Pool. Both pools share a defined amount of ETH liquidity paired with virtual $SAFU reserves.

Below Pool:

• Handles swaps below the Book Value.

• $SAFU sold is burned; ETH is distributed.

• Can only redeem $SAFU when the spot price is less than or equal to the Book Value.

Above Pool:

• Handles swaps above the Book Value.

• ETH is added to the pool, and $SAFU is minted in return.

• Can only purchase $SAFU when the spot price is greater than or equal to the Book Value.