Stability Pool
Last updated
Last updated
Stability Pool is the first line of defense in maintaining system solvency. It achieves that by acting as the source of liquidity to repay debt from liquidated Kasas — ensuring that the total rUSD supply always remains backed.
When a Kasa is liquidated, the debt is repaid by burning rUSD from the Stability Pool. The liquidated Kasa's collateral is then distributed to Stability Pool providers as liquidation gain. Read more about liquidations .
Users can deposit rUSD into the Stability Pool to earn a share of the liquidation gains. The more rUSD a user deposits, the higher their share of the pool and liquidation gains.
: Users can stake rUSD into the Stability Pool to earn a share of the liquidation gains.
: Users can unstake rUSD from the Stability Pool at any time.
: Users can withdraw their share of the liquidation gains at any time.
Let's take a look at each of these functions in more detail.
Staking rUSD is the process of depositing rUSD into the Stability Pool to earn a share of the liquidation gains. The more rUSD a user deposits, the higher their share of the pool and liquidation gains.
Staking more rUSD does not give users a higher share of the pool for the already earned liquidation gains.
It's important to remember that when rUSD is staked in Stability Pool, there is a change of losing the tokens because of liquidations. Stability Pools is the first line of defence in the protocol.
Unstaking rUSD is the process of withdrawing rUSD from the Stability Pool. Users can unstake their rUSD at any time in normal conditions.
If there are Kasas that can be liquidated in the protocol - meaning their collateral ratio are below %110 - unstaking rUSD will be disabled.
Unstaking rUSD does not take away users share of the pool for the already earned liquidation gains.
Withdrawing liquidation gains is the process of withdrawing a user's share of the liquidation gains from the Stability Pool. Users can withdraw their share of the liquidation gains at any time.
After users withdraw their share of the liquidation gains, the gains are reset to zero and users will need to wait for the next liquidation to earn more gains.
Users can increase their share of the liquidation gains by staking more rUSD into the Stability Pool.