Safety and Staking Module (SSM)
The Safety and Staking module (SSM) secures the protocol from bad debt.
CHEDDA token holders are incentivized to lock their tokens to earn new token emission and platform fees. In case of a shortfall event where a token vault becomes undercollateralized (for example due to uncovered liquidation), locked CHEDDA is sold off on the open market and proceeds from that are used to recapitalize the vault.
Note: In case of a shortfall event, new CHEDDA token emission might not be sufficient to account for the amount of tokens sold to cover the shortfall, resulting in the size of the staking pool reducing. In this case, depositors withdraw less than was initially deposited.