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Stability Pool
The Stability Pool is the protocol's first line of defense against liquidations and a yield opportunity for solUSD holders.
How It Works
- Deposit solUSD into the Stability Pool
- When a Trove is liquidated, the pool's solUSD is used to absorb the debt
- In return, the pool receives the liquidated Trove's collateral at a discount
- Your share of the collateral is proportional to your share of the pool
Expected Returns
Stability Pool depositors earn liquidated collateral at a ~10% discount to market value:
- When a Trove at 109% CR is liquidated, the pool pays $X of debt and receives ~$1.09X of collateral
- The effective gain depends on the CR of liquidated Troves (lower CR = lower surplus, but always positive above 100%)
Returns are variable — they depend on how often liquidations occur and at what CR levels.
No Lockup
- Deposit and withdraw at any time
- No minimum deposit
- No lockup period
- Withdrawals are instant
What You Receive
When liquidations occur, your solUSD balance in the pool decreases (used to cover debt) and you receive SOL in return. The SOL you receive is worth more than the solUSD you lost.
Why Deposit?
| Reason | Detail |
|---|---|
| Earn yield | Receive discounted collateral from liquidations |
| Support the protocol | Your deposits keep the system solvent |
| No lockup | Withdraw anytime — full flexibility |
| Simple | No active management required |
Risk
The primary risk is exposure to SOL price changes. When you absorb a liquidation, you receive SOL. If the SOL price continues to drop after you receive it, your net return may be reduced. However, since you receive SOL at a discount, you have a built-in buffer.
Role in the System
The Stability Pool is critical to Manna's solvency:
- Primary liquidation mechanism — absorbs the vast majority of liquidations
- Prevents cascading failures — liquidated debt is immediately covered
- Fallback: If the pool is depleted, the protocol falls back to redistribution among borrowers