ARTH
supply always remains backed by collateral. ARTH
corresponding to the remaining debt has to be burned from the Stability Pool’s balance to repay its debt. In exchange, the entire collateral (committed by the borrower) is transferred to the stability pool as rewards to stability providers.ARTH
tokens to the Stability Pool. This allows them to earn the collateral from the liquidated Trove. When a liquidation occurs, the liquidated debt is cancelled with the same amount of ARTH
in the Pool (which is burned as a result), and the liquidated Ether is proportionally distributed to depositors.110%
).MAHA
tokens continuously over time, in proportion to the size of their deposit. This is known as “Community Issuance”, and is handled by CommunityIssuance.sol
.MAHA
, it is split between the depositor, and the front end through which the deposit was made. Upon registering as a front end, a front end chooses a “kickback rate”: this is the percentage of MAHA
earned by a tagged deposit, to allocate to the depositor. Thus, the total MAHA received by a depositor is the total MAHA
earned by their deposit, multiplied by kickbackRate
. 1-kickbackRate
of the MAHA
earned by the deposit.GMU:USD
price is 100.ARTH
into the pool. These users are also known as pooled users
or stability providers
.ARTH
to the stability pool
, do so to earn liquidation rewards.stability pool
will lose some/part of their ARTH
deposits, as the protocol uses the stability pool to repay bad debt from liquidated loans. ARTH
into the stability pool, which acts as a supplement to the Loan platform. Depositing ARTH
valuecoin to the Stability Pool earns you liquidation rewards.110%
), is returned to the Stability Pool. Stability Providers always remain in a safe and net positive position. $1,000,000
or 500,000 ARTH
(assuming 1 $ARTH = 2 USD
) $100,000
or 50,000 ARTH
$200,000
gets liquidated at 109%
collateral RatioCollateral liquidated = Loan taken out * CR% / Current Price of ETH
ie, ($200,000
* 109%/3000) =
72.66 ETH
ARTH
deposit will go down by 10% (the ARTH
you added into the Stability Pool is used to settle the debt into the system) of the liquidated debt 200,000 USD
20,000 USD
(10% of Total Debt)100,000 USD
80,000 USD
(Initial Position - Your Debt Share) .72.66 ETH
), i.e. 7.26 ETH
, which is currently worth $21,780
(Current ETH price: $3000
). Your net gain from the liquidation is $1,780 USD
ETH
exposure, if the USD value of ETH
is expected to decrease even further.