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.
Stake CHEDDA to earn xCHEDDA. xCHEDDA is an ERC-4626 token which represents shares in staking pool. Over time, newly minted CHEDDA tokens are added to the pool resulting in the pool token balance growing. Thus, stakers can withdraw more tokens than deposited to the pool.
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.