Overview

Lulo offers automated smart contract risk protection for deposits made into supported decentralized finance (DeFi) applications. This protection is built directly into deposit allocations and does not require a manual claims process.

Protected Deposits are designed for users who prefer lower-risk exposure. If a covered integrated protocol suffers a failure (e.g., smart contract exploit, oracle issue, or bad debt event), the smart contracts automatically pull from Boosted Deposits to cover losses.

What's Covered

• Covered Events Smart contract exploits, oracle failures, and bad debt events that directly affect the integrated dApps.

• Limitations Does not protect against broader systemic risks (e.g., Solana network failures, USDC depegging) or failures within Lulo smart contracts themselves.

Core Principles

• Automated Coverage Smart contract-enforced coverage means no manual intervention is needed to compensate for losses if a covered dApp experiences a failure.

• Diversification Deposits are spread across multiple integrated Solana-based protocols (Kamino, Drift, MarginFi, and Jupiter) to reduce risk exposure.

• Transparent & Hassle-Free The protection mechanics are visible on-chain, removing the need for claim filing or reliance on off-chain approvals.

• Flexible Deposit Choices Users can choose between two deposit types—Protected Deposits (lower risk) or Boosted Deposits (higher yield).

Key Benefits

1. Lower Risk The deposit is prioritized for coverage if a covered dApp fails.

2. Stable Yield Earn consistent returns from lending markets.

3. Automatic Coverage No need to file a claim; compensation is built into the system’s rules.

Yield

Protected Deposits earn interest from lending activities across the integrated dApps. A portion of that interest is redirected to Boosted Deposits as a “protection fee.” The net result is a stable (though slightly reduced) yield, given that part of the interest is shared.

Fees

• One-Time Initialization Fee 0.005 SOL + transaction costs for the first deposit.

• No Ongoing Fees Aside from the initial setup fee, there are no recurring management or hidden costs.

Ideal User Type

DeFi participants who value security over maximizing returns and looking to protect funds against potential losses from supported dApp failures.