Stability Pool
Bonq's Insurance Pool
The Stability Pool is funded by other borrowers who deposit BEUR into the Stability Pool to gain from liquidations and earn BNQ rewards.
Since the liquidations are triggered automatically once a Trove Collateral Ratio (TCR) falls under the MCR level, the Stability Providers are likely to gain a significant premium on the liquidated collateral asset, which is a strong incentive to back up the platform and be part of the Stability Pool.
Stability Providers can not select what type of collateral assets they accept during liquidations.
If a user borrows against their own ETH tokens, and decides to deposit some of the borrowed BEUR into the Stability Pool they will participate in all the ETH liquidation. However, they will also receive liquidations from other assets. The users who do not wish to get exposed to certain assets, can swap those assets in the DEX immidiately after the liquidation.
Last modified 5mo ago