> For the complete documentation index, see [llms.txt](https://safu-protocol.gitbook.io/safu/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://safu-protocol.gitbook.io/safu/readme-1.md).

# SAFU value proposition

SAFU revolutionizes the financial insurance landscape  by creating the first self-repaying insurance in financial history, combining restaking primitive with yield-bearing tokens. This enables a safer version of any asset. 

**Current Insurance Landscape**

In DeFi, the market suffers from a lack of scalability, liquidity, and effective pricing models. 

In the whole financial history (both DeFi and TradFi) you had always required a significant capital commitments upfront—creating barriers and inefficiencies....SAFU changes that:

* **No Capital Upfront:** For first time in TradFi & DeFi history, you don not need to pay $ upfront to buy insurance.
* **Capital Efficiency:** Take advantage of DeFi money legos while getting the best risk adjusted yields.
* **Reduced Opportunity Cost:** You have a liquid receipt token of your insured token.
* **Enhanced Scalability:** Expands potential to meet growing demands.
* **Transparent and Fair Pricing:** Ensures fairness through market-driven mechanisms.

For instance, you can hold sUSDe from ethena which has a current yield of 20% and sacrifice 20% of that yield in exchange for having a “fallback” in case the solvency of Ethena is somehow affected. 

* Restakers who opt into Ethena will act as the safeguard in case of a depeg in exchange for the extra yield generated by the underlying (Ethena) while keeping their upside in ETH or BTC.
* Coverage holders hold safuUSDe, a safer version of Ethena's sUSDe which has some fallback on non-correlated assets and instead of yielding 20%, yields 15%.

To demonstrate how this works, we  portray an example with Ethena and EtherFi and later we show how a stablecoin (safuUSD) could be built on top of SAFU infrastructure.

<br>