Level 2 - Rebalance Pool

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