How It Works

Manna follows a simple three-step flow: Deposit → Mint → Deploy.

Step 1: Deposit Collateral

Deposit SOL into the Manna protocol. Your collateral is held in a Trove — your individual borrowing position.

Step 2: Mint solUSD

Borrow solUSD against your deposited SOL. You can mint up to 80% of your collateral's value (the limit imposed by the 125% minimum collateral ratio). A one-time minting fee of 0.5% (base rate) is charged on the borrowed amount.

Step 3: Deploy

Use your solUSD anywhere — provide liquidity, trade, make payments, or hold as a stable asset. There is no interest, no maturity date, and no forced repayment schedule.

Peg Stability Mechanisms

solUSD maintains its $1 peg through two mechanisms:

Mechanism	Direction	How it works
Redemptions	Protects peg from below	Any solUSD holder can redeem for $1 of SOL at face value, creating a hard price floor
Stability Pool	Absorbs liquidations	solUSD depositors absorb bad debt and receive discounted SOL, maintaining system solvency

Flow Diagram

  User                    Manna Protocol              Solana
  ────                    ──────────────              ──────
    │                           │                        │
    │──── Deposit SOL ─────────▶│                        │
    │                           │── Lock collateral ───▶│
    │◀─── Mint solUSD ──────────│                        │
    │                           │                        │
    │    ... use solUSD ...     │                        │
    │                           │                        │
    │──── Repay solUSD ────────▶│                        │
    │◀─── Withdraw SOL ─────────│── Release collateral ─▶│
    │                           │                        │

What Keeps the System Safe?

• Over-collateralization — every solUSD is backed by at least 125% in SOL
• Liquidations — under-collateralized Troves are liquidated before they become insolvent
• Recovery Mode — if the system-wide collateral ratio drops below 150%, stricter rules apply
• Redemptions — create a hard floor for the solUSD price at $1