TS
@taosu
Catastrophe Bonds (Cat Bonds) are financial instruments that provide additional capital to insurance and reinsurance companies during natural disasters, transferring some of the risk to bondholders.
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TS
@taosu
A stablecoin project issues Cat Bonds, setting a 5% de-pegging as the trigger condition. Once triggered, smart contracts automatically pay out, helping the stablecoin restore its peg.
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