How to Stake USDEFI
Last updated
Last updated
Staking USDEFI in the Stability Pool is a simple process.
You will NEED USDEFI, if you don't know how to mint it read the user guide here!
Here's how you can do it:
Navigate to the DCNTRL Protocol dashboard.
In the 'Stability Pool' section, enter the amount of USDEFI you wish to stake. Click on the 'Confirm' button. This will initiate a transaction request.
Confirm the transaction in your wallet. Once the transaction is confirmed, your USDEFI will be staked in the Stability Pool.
Once you've staked your USDEFI, you'll start earning Liquidation Fees in BNB and bonus DCNX rewards. These rewards are automatically accumulated and can be claimed at any time.
To claim your DCNX rewards, follow these steps:
Navigate to the DCNTRL Protocol dashboard. In the 'Stability Pool' section, you'll see the amount of DCNX you've earned and any protocol Liquidation Fees Obtained in BNB.
Click on the 'Claim BNB & DCNX' button. This will initiate a transaction request.
Confirm the transaction in your wallet. Once the transaction is confirmed, your DCNX rewards and BNB liquidation profits will be added to your wallet.
While the majority of liquidations will take place at a collateral ratio well above 100%, there is a theoretical chance of a loan position being liquidated below 100% due to a flash crash or an oracle failure. In such situations, you might incur a loss as the gain from collateral could be less than the reduction in your deposit.
If USDEFI is trading over $1, liquidations might become unprofitable for Stability Providers even at collateral ratios over 100%. However, this is a hypothetical, impermanent loss, as USDEFI is expected to return to the peg, so the "loss" only materializes if you withdrew your deposit and sold the USDEFI at a price over $1.
If the Stability Pool is depleted, the system activates a secondary liquidation mechanism known as redistribution. In such a case, the system redistributes the debt and collateral from liquidated loan positions among all other existing loan positions. This redistribution of debt and collateral is performed proportionally to the recipient loan position's collateral quantity.
