Chymia
  • What is Chymia
  • ELI5: Activities on Chymia
  • Protocol Concepts
    • Connecting Web3 Wallets to Chymia
    • Depositing Collateral and Minting cUSD
      • Vault
      • Individual Vault Collateral Ratio (ICR)
      • Minimum Collateral Ratio (MCR)
      • Loan Duration
      • Liquidation Reserve
    • Using cUSD
      • Stability Pool
        • Acquiring Liquidated Collateral at a Discount
      • Redemption
    • Repaying cUSD Debt
    • Peg Maintenance
    • Liquidations
      • Liquidator
      • Claiming Liquidated Collateral
      • Liquidation Penalty
      • Underfunded Stability Pool
    • Recovery Mode
      • Impact on Fees
      • Impact on Liquidations
    • Fees
      • Minting Fees
      • Redemption Fees
      • Non-Redemption Fees
      • Interest Fees on Debt
    • Supported Collateral
  • Governance
    • Protocol Governance
    • Earning CHY
    • Emissions
    • Locking
    • Voting
    • Boosting Emissions
Powered by GitBook
On this page
  1. Protocol Concepts
  2. Using cUSD

Stability Pool

Chymia’s Stability Pool ensures that the total supply of cUSD is always sufficiently collateralized.

When a vault is liquidated, an equivalent amount of cUSD is burned from the Stability Pool’s balance to settle its outstanding debt. In return, the Stability Pool will receive the vault’s liquidated collateral.

The Stability Pool is supported by Stability Pool Providers who deposit cUSD into it. They do so in order to:

  1. Acquire supported collateral at a discount

  2. Earn CHY tokens

Ownership of the Stability Pool is weighted by the amount of cUSD contributed by each Provider. Therefore, assets are allocated on a pro-rata basis.

PreviousUsing cUSDNextAcquiring Liquidated Collateral at a Discount

Last updated 1 year ago