Earn

Deposit CCPU into the Stability Pool to backstop liquidations. The upside is liquidated collateral. The risk is your CCPU gets burned.

How does the Stability Pool work?

Depositors stake CCPU into a shared pool. When a liquidation finalizes, the pool burns CCPU pro-rata to cancel the position's debt, and depositors get pro-rata claims on the seized collateral. The pool pays you in the liquidated collateral itself, not at a rate.

Can I lose money?

Yes. You profit when the collateral you receive is worth more than the CCPU burned, and you lose when it's worth less. A fast crash can do exactly that. Claimable collateral is also market exposure until you claim and sell or hedge it. And in quiet markets there are no liquidations, so there is nothing to earn. Pool CCPU doesn't accrue interest.

Worked example

The pool has 100,000 CCPU and you deposited 10,000, a 10% share. A liquidation absorbs 5,000 CCPU of debt and credits $5,500 of collateral. You lose 500 CCPU and gain about $550 of collateral, a $50 net gain. If that collateral is worth only $4,500 by the time you realize it, the same trade is a $50 net loss.

What protects depositors?

A reserve floor keeps 10% of pool deposits out of any liquidation, so one event cannot drain the pool. When a liquidation produces a shortfall, the protocol's surplus buffer drains before depositors absorb the remainder. And volatile collateral gets lower borrowing limits so positions carry more collateral per unit of debt before the pool ever sees them.

How do I withdraw?

Unstaking is a two-step flow with a delay, about 18 minutes at the default setting, and your deposit can still absorb liquidations until it completes. The program requires you to claim pending collateral gains before unstaking.