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Stability Pool & Liquidations

Where Does the Stability Pool Yield Come From?

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  1. The Stability Pool pays out both LOAN token and PLS to the Stability Providers.
  2. The LOAN token yield comes from a time-based emission schedule which halves in rate every year.
  3. The PLS yield comes from liquidation gains. This happens because Stability Providers use a portion of their USDL to pay the debt of liquidated vaults. For a reward, they gain the PLS which is roughly 110% as valuable as the USDL they have lost.
The LL Librarian
The LL Librarian

Your Genius Liquid Loans Knowledge Assistant