# FAQ

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<summary>What are the AI agents used in Tren Finance?</summary>

Tren AI operates through a network of specialized AI agents, each performing a specific function. Read more about each of them [here](https://app.gitbook.com/o/ekO061FGpqpZfWqB2ayo/s/1RFiSnFFNN5tL05uK9pV/~/changes/166/tren-ai/agent-specialization).

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<summary>What happens if an AI agent makes a mistake?</summary>

Tren AI includes multiple fail-safes to prevent incorrect AI decisions:

* AI decisions are validated using multiple sources before execution.
* Emergency governance overrides allow manual intervention if needed.
* Rate limits on AI adjustments prevent sudden extreme changes in protocol settings.

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<summary>How does Tren AI learn and improve over time?</summary>

Tren AI employs **machine learning and RAG (Retrieval-Augmented Generation)** to **continuously refine** its models:

* AI agents track **every decision, past risk events, and liquidation records**.
* **Reinforcement learning** helps AI fine-tune strategies for better capital efficiency.
* AI **retrieves governance history** to ensure **consistent and optimal decision-making**

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<summary>How does Tren AI use LangChain and RAG technology?</summary>

Tren AI utilizes LangChain and RAG (Retrieval-Augmented Generation) to process structured and unstructured data:

* RAG retrieves historical governance, risk events, and liquidation data.
* LangChain Tools fetch real-time market data, trading volumes, and oracle feeds.
* AI combines both data sources to make informed, real-time decisions on protocol adjustments.

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<summary>Does Tren Finance have redemptions?</summary>

No, Tren Finance does not have redemptions. To see why, please read [here](https://docs.tren.finance/tokens/xy#handling-trenusd-above-its-peg-6)

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<summary>What are the use cases and strategies that I can employ with Tren Finance?</summary>

Tren Finance unlocks numerous ways to (re)collateralize idle liquidity. Please read our  [Use Cases](https://docs.tren.finance/what-is-tren-finance#use-cases) section and detailed explanations of the different [Strategies](https://docs.tren.finance/get-started/what-is-tren-finance/lp-tokens) that you can employ.

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<summary>Does the protocol use isolated, or cross-collateral pools?</summary>

The protocol uses isolated modules architecture. [Read more](https://docs.tren.finance/protocol/isolated-modules)

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<summary>How does XY maintain its peg?</summary>

Tren Finance uses soft peg, and hard peg mechanisms for when XY is above and below its target peg. If XY is below peg for a sustained period of time, a XY buyback and burn program is deployed. [Read more](https://docs.tren.finance/tokens/xy#peg-stability)

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<summary>How does the protocol handle liquidations?</summary>

The protocol primarily relies on the Insurance Pool mechanism for liquidations. [Read more](https://docs.tren.finance/protocol/liquidations)

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<summary>Does the protocol have revenue sharing mechanisms? How does TREN accrue value? </summary>

90% of protocol revenue goes towards TREN buybacks. [Read more](https://docs.tren.finance/tokens/tren-and-vetren)

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<summary>How does protocol revenue distribution work? </summary>

Protocol revenue allocation is decided by the TrenDAO ([veTREN](https://docs.tren.finance/tokens/tren-and-vetren#what-is-vetren) holders). The TrenDAO vote on different [Gauges](https://docs.tren.finance/protocol/gauges) to decide protocol revenue allocation and distribution. [Read more](https://docs.tren.finance/protocol/gauges)

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<summary>Does Tren Finance have a token?</summary>

Yes, there are two tokens on Tren Finance. One is [TREN](https://docs.tren.finance/tokens/tren-and-vetren), a fixed-supply value accrual token architected on the principles of the ve(3,3) model. The other token is [XY](https://docs.tren.finance/tokens/xy), a synthetic dollar debt token backed by overcollateralized loans.

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<summary>What stablecoins are eligible for deposit in the <a href="../protocol/single-sided-liquidity-ssl">Liquidity Generation Event</a>?</summary>

USDT is currently eligible. We will look to expand the list of eligible stablecoins based on demand.

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<summary>Is there a way to repay loans / withdraw collateral via smart contracts and not the frontend?</summary>

Yes. Follow the steps outlined [here](https://docs.tren.finance/resources/contract-addresses/withdrawing-via-smart-contracts).

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