Stability Pools
Buy the Dip at 90 Cents on the Dollar
Forget hunting for dips. Forget timing the market. Forget competing with MEV bots.
Stability pools put you first in line to buy liquidated collateral at guaranteed discounts. When leveraged degens get rekt, you get their ETH at 5-15% off. Automatically. Passively. While earning triple-stacked yields on top.
This is wholesale DeFi liquidations, democratized.
The Core Proposition
Instant Arbitrage Opportunities
Unlike traditional liquidation systems that require active monitoring and complex bot infrastructure, stability pools democratize liquidation profits:
Passive Participation: Deposit once and automatically participate in liquidations
Fair Distribution: Profits shared proportionally among all depositors
No Technical Barriers: No bots, no gas wars, no timing games
Guaranteed Discounts: Fixed liquidation fees ensure profitable swaps
When liquidations occur, your deposited assets instantly convert to discounted collateral — creating immediate, realized profit without any action on your part.
Multiple Revenue Streams
Stability pool participants benefit from three distinct yield sources that compound together:
Base Asset Yield: sGREEN continues earning protocol revenue while in the pool
Liquidation Premiums: Purchase collateral at 5-15% below market value
RIPE Rewards: Earn protocol tokens from the Stakers allocation
This triple-yield structure can generate returns significantly exceeding traditional DeFi strategies.
How Stability Pools Work
The Deposit Process
You can deposit two types of assets into stability pools:
GREEN LP Tokens (GREEN/USDC liquidity positions)
Earn trading fees while waiting for liquidations
First priority in liquidation hierarchy
Transferred to Endaoment treasury when used
sGREEN (Savings GREEN)
Continues earning base yield in the pool
Used after GREEN LP tokens
Redeemed and burned during liquidations
Your deposits are converted to shares representing your proportional claim on the pool's total value — including both deposited assets and accumulated liquidated collateral.
The Liquidation Flow
When a borrower's position needs liquidation:
Protocol checks stability pools for available liquidity
Your pool assets swap for collateral at the liquidation discount
You receive collateral worth more than the assets spent
The discount becomes your profit — instantly realized
Example: If ETH is worth $2,000 and liquidation fee is 10%, the pool buys ETH at $1,800. You get $2,000 of ETH for $1,800 worth of pool assets — a $200 instant profit per ETH.
USD Value-Based Accounting
Unlike simple token vaults, stability pools use sophisticated USD value-based share accounting:
Share Price = Total Pool Value / Total Shares
Pool Value = Deposited Asset Value + All Claimable Asset Values
Your Value = Your Shares × Current Share Price
This ensures fair distribution regardless of which assets the pool holds at any moment.
The Economics of Liquidation Profits
How Liquidation Fees Become Your Profit
The protocol's liquidation fee structure directly determines your returns. When a position liquidates:
5% liquidation fee = You buy collateral at 95% of market value
10% liquidation fee = You buy collateral at 90% of market value
15% liquidation fee = You buy collateral at 85% of market value
Higher-risk collateral types carry higher liquidation fees, meaning bigger profits for stability pool participants. The protocol calibrates these fees to ensure profitability even during volatile markets.
Real-World Scenarios
During Market Volatility: Liquidations increase as prices swing, generating more profit opportunities. Your passive position captures value from market stress without active trading.
In Stable Markets: Fewer liquidations occur, but you continue earning base yields from sGREEN or GREEN LP tokens plus RIPE rewards. The triple-yield structure ensures returns even in quiet periods.
Portfolio Effect: As liquidations occur across different collateral types, you build a diversified basket of assets acquired at discount — essentially dollar-cost averaging into multiple positions at below-market prices.
Advanced Features
Claiming Liquidated Collateral
After liquidations, you can claim your proportional share of accumulated collateral:
Flexible Claims: Choose which assets to claim and when
Value Preservation: Your share value remains constant whether claimed or not
Auto-Deposit Option: Claimed assets can automatically enter Ripe deposit vaults
Dynamic RIPE Rewards: Claims trigger RIPE token rewards based on USD value claimed
Claim Incentives: Keeping Pools Healthy
The protocol uses a dynamic reward system to maintain optimal pool composition. When stability pools accumulate too much liquidated collateral, the protocol can activate claim incentives:
RIPE per Dollar Claimed: Each asset can have a specific reward rate (e.g., 0.1 RIPE per $1 of ETH claimed)
Strategic Timing: Higher rewards when pools need rebalancing with fresh sGREEN or GREEN LP
Automatic Distribution: Rewards paid instantly when you claim, locked in governance vault
Pool Health Mechanism: Ensures pools always have liquidity for new liquidations
This creates a market-driven rebalancing system — when collateral accumulates, increased rewards incentivize claims, replenishing the pool with fresh deposits.
GREEN Redemption Mechanism
Stability pools also serve as a stability mechanism for GREEN. When the pool holds liquidated collateral, any GREEN holder can:
Redeem GREEN for collateral at exactly $1 value
Help stabilize GREEN price through arbitrage
Pool maintains value as GREEN replaces claimed collateral
This creates a powerful peg defense mechanism while preserving depositor value.
Multi-Asset Accumulation
Over time, stability pools accumulate diverse collateral types:
ETH from liquidated Ethereum positions
cbBTC from Bitcoin-backed loans
Various DeFi tokens from other collateral types
GREEN from redemption operations
You maintain exposure to this diversified basket while earning on all components.
Why Participate in Stability Pools?
For Yield Seekers
Triple-stacked returns from base yield, liquidations, and rewards
Passive income requiring no active management
Predictable profits from fixed liquidation discounts
For Risk-Conscious Users
Senior position in liquidation hierarchy
Instant liquidity with no lockups
Protocol protection role enhances system stability
For GREEN Ecosystem Supporters
Strengthen the protocol by providing liquidation liquidity
Earn while protecting the system from bad debt
Accumulate governance power through RIPE rewards
The Liquidation Game, Simplified
Every market crash. Every overleveraged position. Every liquidation event.
They all flow through stability pools first. While others panic sell, you're automatically buying at protocol-enforced discounts. While others chase yields, you're stacking three revenue streams simultaneously.
No bots. No gas wars. No coding required.
Just deposit, wait for the inevitable liquidations, and collect your discounted crypto. The degen's loss is quite literally your gain.
Stop watching liquidations happen. Start profiting from them.
For technical implementation details, see the StabilityPool Technical Documentation.
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