---
title: "Codex Insurance Mechanism Analysis"
---
### `vac:tke::codex:cdx-insurance`
---

```mermaid
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gantt
	dateFormat YYYY-MM-DD
	section Codex
		Insurance Mechanism :, 2024-02-01, 2024-07-01
```

- status: 95%
- CC: Frederico, Juan

### Description
Mechanisms to make the system more stable

### Justification
Understand the roles that impact the performance and security of the protocol. As part of the Codex Technical Milestone #5 ("Tokenomics").

### Deliverables
- Specific parts of three chapters of the Codex Litepaper (Use Cases, Contract Lifecycle, and CDX Tokenomics) (the milestones [cdx](cdx.md), [cdx-fees](cdx-fees.md), and [cdx-lender](cdx-lender.md) cover the remaining parts of these chapters).
- One section of the Codex Whitepaper (CDX Tokenomics)

### Tracking Metrics
Completion of the respective sections in the Codex Litepaper and Whitepaper.

### Work breakdown
- Definition of insurance role.
- Analysis of CDX impact on system security. 
- Comparison against protocols which don’t have any embeeded stabilization mechanism.

### Perceived Risks
Technical and legal constraints.