Staking to the Stability Pool

Stake trenUSD to earn yields and protect the overall protocol.

The stability pool is the first line of defensive in case there is a position that cannot be liquidated in the event that there is not enough liquidity.

The stability pool acts as a defence mechanism, designed to manage liquidations efficiently and stabilize the system under stress. Its primary function is to handle cases where positions become undercollateralized, often triggered by a significant drop in the collateral token's price.

The Purpose

The core purpose of the Stability Pool is to act as a buffer against potential debt arising from liquidated collateral. When a loan is identified as undercollateralized, the protocol initiates a liquidation process. Here, the Stability Pool plays a vital role by absorbing the debt of the liquidated loans in a decentralized and efficient manner, thus safeguarding the protocol's health and the peg of trenUSD to the US dollar.


Users can deposit trenUSD into the Stability Pool. By participating, depositors contribute to the overall health and stability of the system. In return for their contribution, depositors earn rewards


Depositors in the Stability Pool receive several types of rewards:

  • Liquidated Collateral: When a collateral position is liquidated, the Stability Pool depositors receive the actual liquidated assets. For example, if a borrower's Pepe collateral is liquidated, depositors will receive Pepe tokens as part of the liquidation profit.

  • Stable Yield Incentives: Following the release of our native token, TREN, depositors will earn a stable yield in the form of TREN tokens. These incentives are designed to reward users for their role in maintaining the protocol’s stability and are distributed based on their contribution to the pool.

  • Partnered Incentives: Additionally, through strategic partnerships like that with Mode Network, depositors may also receive external incentives such as Mode tokens. These partnerships are aimed at enhancing the benefits for Stability Pool participants, thereby encouraging longer-term and more substantial participation.

Please note that by staking to the stability pool, your position will be at risk of being slashed.

How to Stake

Get Started

To begin staking in the stability pool, first navigate to the “Earn” section of the platform.

Claiming Rewards

Claiming your rewards is a straightforward process. Simply click on the "Claim Rewards" button. Your rewards will be paid out in the same asset that was used as collateral from the liquidated position.

In version 2 of the protocol, we plan to streamline the claiming process. When a position is liquidated, the collateral will be automatically converted to TREN, allowing you to claim your rewards in TREN. This will reduce the risk of claiming volatile assets that could change in price between the point of liquidation and the point of claim.

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