Key Concepts

CDP (Collateralized Debt Position)

A loan where you lock up SOL as collateral to borrow a stablecoin (solUSD). Your collateral must always exceed your debt by a minimum ratio.

Trove

A Trove is your individual CDP within Manna. It tracks your deposited SOL and outstanding solUSD debt. Each user has one Trove.

Collateral Ratio (CR)

The ratio of your collateral's value to your debt:

CR = (Collateral Value / Debt) × 100%

Minimum CR is 125%. Below that, your Trove is liquidated.

Liquidation

When a Trove's CR falls below 125%, it is closed and its collateral is used to cover the debt. The Stability Pool absorbs the debt and receives the collateral at a ~10% discount.

Stability Pool

A pool of solUSD deposited by users. It serves as the first line of defense against liquidations — absorbing debt from liquidated Troves and distributing the seized SOL to depositors.

Redemption

Any solUSD holder can redeem their tokens for $1 worth of SOL at any time. Redemptions target the riskiest Troves (lowest CR) first. This creates a hard price floor for solUSD at $1.

solUSD

The native stablecoin of Manna Protocol. Soft-pegged to $1 USD, backed by SOL collateral, and always redeemable for $1 of SOL.

Recovery Mode

A system-wide safety state triggered when the total collateral ratio (TCR) of the entire protocol drops below 150%. During Recovery Mode, Troves with a CR below the TCR can be liquidated, and new borrowing is restricted.