Stability Pool

The Stability Pool is like a safety net for the entire system. It is filled by users who deposit their PDP tokens into the pool. When a borrower's vault becomes unsafe and there isn't enough collateral left, the Stability Pool steps in to cover the loss.

In return, those who provide PDP to the pool can earn rewards. These rewards include a share of the liquidated collateral (such as Ether or other tokens) and extra PDP tokens as bonuses. For example, in similar DeFi platforms, stability pools have held millions of dollars and paid out thousands of dollars in rewards to participants every month.