Stability pool

Deposit oUSD to back OMEGA's loans. You earn a share of the protocol's revenue, the ADA from liquidations and OMEGA rewards.

#What it does

The stability pool is OMEGA's first line of defence. When a loan reaches the 70% loan level, the pool's oUSD repays its debt and the pool receives the loan's ADA in return, at a discount. Depositors share that ADA, so a liquidation usually leaves them better off.

#What you earn

• A share of revenue: 35% of everything OMEGA earns. The oUSD is shared out over 7 days as it arrives; any ADA is shared straight away.
• ADA from liquidations: bought with the pool's oUSD at a discount.
• OMEGA rewards: from the rewards programme.

#Depositing and withdrawing

• Smallest deposit: 100 oUSD, and 100 oUSD for each top-up.
• No lock: withdraw whenever you like.
• Requests: deposits and withdrawals are queued, then processed in batches by anyone, usually within a minute. You can cancel your own request while it waits. Each request carries a little ADA, and whoever processes it may keep at most 0.5 ADA for doing so.
• Your account: your first deposit opens an account in the pool, and your wallet receives its owner NFT. Whoever holds it controls the account.

#The warm-up

New money earns its share of fees from day one, but only starts sharing in liquidations, both their cost and their ADA, when it joins the pool: at the first midnight (UTC) at least 7 days after it was deposited.

The warm-up stops anyone jumping in just before a liquidation to take its ADA and leaving straight after. While money is warming up:

• its fees are paid when it joins, and given up (to everyone else) if it's withdrawn before then;
• withdrawals take warming-up money first;
• an account can't add more until it has joined: open a second account instead.

#When the pool pays for a liquidation

Your deposit's oUSD goes down by your share of the debt repaid, and you receive your share of the ADA. Because the ADA comes at a discount, its value is normally more than the oUSD it replaced. In a sharp fall, part of your deposit can come back as ADA rather than oUSD.

#The backstop

OMEGA keeps its own deposit in the pool, the backstop. It pays for and gains from liquidations exactly like everyone else's active money, but it can never be withdrawn and takes no share of the depositors' fees. It grows from its own 20% share of revenue, so the pool gets deeper as OMEGA grows.

#Always open

The pause never touches the stability pool: deposits, withdrawals and liquidations always carry on.