Stable Jack
  • Introduction to Stable Jack
    • Introduction to Stable Jack
    • Why Do the Markets Need Stable Jack?
    • The Mechanism Behind Stable Jack
      • Technical Explanation of the Mechanism
  • Stable Jack v2
    • Why We're Building Stable Jack v2
    • Introduction to Yield Token (YT)
    • Introduction to Volatility Token (VT)
    • Introduction to Points Token (PT)
    • New Features Coming with the v2
    • Competitor Analysis
    • What Use Cases does Stable Jack offer?
    • How Stable Jack Creates New Demand: The BENQI Case Study
    • Risk Management
    • Additional Information
  • Audits
  • Stable Jack v1
    • Stable Jack v1
      • System Stability
      • Risk Management
        • Level 1 - Stability Mode Mint/Redeem Controls
        • Level 2 - Rebalance Pool
        • Counter-Party Risk Management
      • Calculations
      • FAQ
        • The Difference Between aUSD and UST
      • Contract Adresses
  • $JACK Tokenomics
    • The Death of Airdrops: Discount Tickets as a New Paradigm
      • The Solution: Discount Tickets
      • The Case for Discount Tickets
      • Comparison: Discount Tickets vs Airdrops?
    • $JACK Token
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  1. Stable Jack v1
  2. Stable Jack v1
  3. Risk Management

Level 2 - Rebalance Pool

PreviousLevel 1 - Stability Mode Mint/Redeem ControlsNextCounter-Party Risk Management

Last updated 8 months ago

With the mint and redeem controls in place to limit unhelpful user behaviors, the protocol’s next move is to actively increase the CR. This is accomplished by redeeming aUSD tokens from a ready pool which is maintained for the purpose, called the Rebalancing Pool.

The Rebalancing Pool is a vault offered by the protocol where aUSD holders can deposit their aUSD to earn a share of the reserve LSD yields and to be available to be redeemed for sAVAX if the need arises. Depositors in the pool earn a high yield, and if stability mode engages at any point, a portion of their aUSD will be redeemed for sAVAX. sAVAX redeemed from aUSD is owned by the Rebalancing Pool depositor. Depth liquidity in this pool ensures the protocol has access to sufficient aUSD to stabilize the protocol when needed. Here's a calculation that shows the yield for aUSD staking in the rebalancing pool:

https://docs.google.com/spreadsheets/d/1fKvmTz3vYAQP35cH1Pa8dSUD1NCOTEIQO5vLijqiXHI/edit#gid=1478699993