Vault

The fundamental feature of Marquee is the Vault, a DeFi 2.0 repository or reserve of funds. Other DeFi 2.0 projects also call it "treasury".

Connection to Bond

The vault accepts mainstream crypto assets in exchange for MARQ tokens at a discount. The discount motivates investors to purchase MARQ from the vault (Bonders) rather than from exchanges. Each newly issued MARQ via bonds is accompanied by several MARQ minted at the same time (The number of MARQ minted depends on the current market price. For more information about minting, please refer to Mint & Burn). These MARQ tokens are retained in the vault to pay for the indicative APY to bonders and the losses in unlikely cases where insurance funds are insufficient to cover the compensation.​

Connection to Fund Pool

Apart from outside investors, the vault can also act as a Fund Provider to provide adequate liquidity for the fund pool to bootstrap the growth of insurance projects. Analogously, the vault acts like a "central bank" to commercial banks or a "reinsurer" to traditional insurance companies. The vault is governed by the protocol to mint and burn tokens to support the price of MARQ, so MARQ is always backed (not pegged) by one USDT. Therefore, MARQ is not subject to uncontrolled inflation, and it can serve as a reserve crypto asset.​

Connection to Staking Pool

Vault receives a portion of the insurance premia according to its shares. By staking MARQ in the Marquee Staking Pool, stakers make a profit by cutting a share of the returns to assets in the vault.​In other words, the price of MARQ can grow over time if the funds in the vault grow faster than the MARQ​ issuance. In the meantime, Marquee seeks to support valuable DeFi insurance projects by providing infrastructure and liquidity.