Making Your Collateral Work: How PDP Increases Efficiency

In Paydax, your collateral actively works for you. When you borrow assets by locking in your crypto or real-world assets, you can also participate in the ecosystem in other ways. For example, you can stake PDP tokens in the Stability Pool. This pool acts as a community safety net: if another user's position becomes undercollateralized and needs to be liquidated, the system uses PDP from the pool to help manage the debt. In return, Stability Pool participants receive a portion of the liquidated collateral, often at a discount, thus earning rewards. This makes the entire system more efficient, rewarding, and sustainable.