Using the Stability Pool
Learn how to deposit USDFC into the Stability Pool and earn rewards
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Learn how to deposit USDFC into the Stability Pool and earn rewards
Last updated
Was this helpful?
USDFC tokens in your wallet
Access to the
Connected wallet with enough FIL for gas fees
The Stability Pool is a key component of the USDFC protocol that helps maintain system stability. By depositing your USDFC into the Stability Pool, you contribute to the liquidation mechanism and earn rewards in the form of liquidated FIL collateral. This guide will walk you through the process of depositing USDFC into the Stability Pool and understanding how rewards work.
First, you need to navigate to the Stability Pool section in the USDFC application.
Navigate to the
Connect your wallet if not already connected
Locate the "Stability Pool" section on the Dashboard page
See the "Protocol Statistics" section to check the Stability Pool information
[Image: Screenshot of the USDFC application with the Stability Pool option highlighted]
Before depositing, review the current Stability Pool information.
Check the total USDFC deposited in the Stability Pool
Review the current rewards (if displayed)
Note that liquidation rewards are automatically calculated and distributed on a pro rata basis based on your Stability Pool contribution
Be aware that liquidation history is not displayed in the app but may be available through external on-chain analytics tools
[Image: Screenshot of the Stability Pool dashboard showing key metrics]
Now you can deposit your USDFC into the Stability Pool.
Enter the amount of USDFC you want to deposit
Review any fees or conditions associated with the deposit
Click the "Confirm" button
Confirm the transaction in your wallet
Wait for the transaction to be processed on the blockchain
[Image: Screenshot of the deposit interface with amount input field and deposit button]
After depositing, you can monitor your position and earned rewards.
Your deposit amount will be displayed in the Stability Pool dashboard
Any earned FIL rewards will accumulate over time
The dashboard will show your share of the Stability Pool and Liquidation gain as rewards
[Image: Screenshot showing deposit and rewards information]
When you've earned rewards, you can claim them.
Locate the "Claim FIL" or similar button in the Stability Pool dashboard
Click the button to claim your earned FIL rewards
Confirm the transaction in your wallet
Wait for the transaction to be processed
Verify that the FIL rewards have been added to your trove
[Image: Screenshot highlighting the claim rewards functionality]
You can withdraw your USDFC from the Stability Pool at any time.
Enter the amount of USDFC you want to keep in the Stability Pool by subtracting the amount of USDFC you want to withdraw
Click the "Confirm" button
Confirm the transaction in your wallet
Wait for the transaction to be processed
Verify that the USDFC has been returned to your wallet
[Image: Screenshot of the withdrawal interface]
When a Trove is liquidated, the following happens:
The system identifies Troves with collateral ratios below the minimum requirement
USDFC from the Stability Pool is used to repay the debt of the liquidated Trove
The liquidated Trove's collateral is distributed to Stability Pool depositors proportionally
Rewards are distributed based on your share of the Stability Pool:
[Image: Visual representation of the reward distribution mechanism]
It's important to understand that your deposit may be "diluted" over time:
When liquidations occur, some of your deposited USDFC is used to repay debt
Your deposit amount decreases, but you receive FIL collateral in return
This is not a loss but a conversion from USDFC to FIL at a potentially favorable rate
[Image: Diagram explaining deposit dilution during liquidations]
Deposit a small portion of your USDFC (10-20%)
Lower risk and lower potential rewards
Good for those who want to maintain liquidity
Deposit a moderate portion of your USDFC (30-60%)
Balance between liquidity and potential rewards
Monitor the system health regularly
Deposit a large portion of your USDFC (70-100%)
Higher potential rewards during periods of liquidations
Less liquidity for other opportunities
[Image: Comparison chart of different Stability Pool strategies]
Explore other ways to use your USDFC in the ecosystem
Transaction Failed: Ensure you have enough FIL for gas fees
Cannot Deposit: Verify that you have the USDFC amount you're trying to deposit
Rewards Not Showing: Rewards only accumulate when liquidations occur; there may not have been recent liquidations
Q: Is there a minimum amount I need to deposit? A: There is typically no minimum amount, but very small deposits may result in gas fees outweighing potential rewards.
Q: How often are rewards distributed? A: Rewards are distributed automatically during liquidation events. The frequency depends on market conditions and system health.
Q: Can I lose my deposited USDFC? A: Your deposit is used to repay liquidated debt, but you receive FIL collateral in return, often at a discount to market value.
Q: How do I know if the Stability Pool is profitable? A: Monitor the liquidation history and current system health. More liquidations generally mean more rewards for depositors.
Learn about when you're ready to exit
Understand and how it affects the Stability Pool