If the insurance provider stakes their USDT with Unitas insurance contract, he/she will receive 4REX tokens in return as IOU. The smart contract will create a CDP that includes the following information:
amount of USDT staked;
the maturity period; and
the amount of 4REX tokens issued to this insurance provider.
Once the maturity period is over, insurance providers have the option to redeem their USDT by returning the original amount of issued 4REXs.
Insurance providers have the option to sell their 4REX tokens to satisfy the demand for speculations or liquidity; they can also choose to lock their 4REX to earn yields from the protocol.