Stability Pool

The Stability Pool serves as a primary source of liquidity to repay debt from liquidated troves and reward depositors with the liquidated collateral, which is shared among Stability Providers in proportion to their deposit size. Any USDS holder may deposit USDS to the Stability Pool.

Since liquidations are expected to occur at an CR of just below 110%, and even in most extreme cases, still above 100%, a depositor can expect to receive a net gain from most liquidations. When that holds, the dollar value of the collateral gain from a liquidation exceeds the dollar value of the USDS loss (assuming the price of USDS is $1).

When any Trove is liquidated, an amount of USDS corresponding to the remaining debt of the Trove is burned from the Stability Pool’s balance to repay its debt. In exchange, the entire collateral from the Trove is transferred to the Stability Pool.

In summary, Stability Providers receive liquidation gain in the form of collateral (LSD and BNB) and SABLE tokens as early adopter rewards.

Please note that you will not be able to withdraw USDS from the Stability Pool if there is any undercollateralized trove.