Stability Pool

Liquidation insurance pool where ALUD depositors earn collateral gains and OEC rewards.

Address (Sepolia): 0xB61a71C78e10C0C92e2dFF457C9F87dC71260c43

Overview

The Stability Pool absorbs debt from liquidated troves. In return, depositors receive the liquidated collateral (at a discount) and earn OEC governance token emissions.

How It Works

  1. Users deposit ALUD into the Stability Pool

  2. When a trove is liquidated, the pool's ALUD is burned to cover the debt

  3. The liquidated collateral is distributed pro-rata to all depositors

  4. Since collateral is received at 110% ratio but valued at market price, depositors profit

  5. OEC emissions are distributed continuously to depositors

User Functions

Function
Description

depositALUD(amount)

Deposit ALUD to the pool

withdrawALUD(amount)

Withdraw ALUD from the pool

claimCollateralGains()

Claim accumulated collateral from liquidations

claimOECRewards()

Claim accumulated OEC emissions

Read Functions

Function
Returns

getStabilityPoolStats()

Total deposits, OEC balance/released

getUserStabilityPoolPosition(owner)

Deposit, gain tokens, gain amounts, pending OEC

Earnings

Stability Pool depositors earn from two sources:

Source
Asset Received
How

Liquidation gains

WBTC/WETH/LINK

Pro-rata share of liquidated collateral

Protocol emissions

OEC

Continuous distribution from EmissionsVault

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Net Positive: Even though your ALUD is burned during liquidations, you receive collateral worth more than the ALUD burned (because troves are liquidated at 110% ratio). The net result is typically a profit.

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