Introducing Leverage Interest Rate to Incentivize pSOL Stability

PAI leverage rate was introduced in November 2021
  • Start with 1.00 SOL
  • Stake 1.00 SOL in the yPRT staking pool to earn SOL yield
  • Deposit 1.00 worth of yPRT to mint 0.98 pSOL
  • Trade 0.98 pSOL for SOL, stake
  • Now there is 1.98 prSOL earning yield. Repeat.
pSOL vaults by collateral types (%)
  • A stability pool will be created to provide SOL liquidity for pSOL
  • pSOL interest rate to rise to incentivize the SOL:pSOL stability pool
  • The pSOL interest rate will be determined by the imbalance ratio of pSOL:SOL in the stable swap markets
  • A pSOL stable vault may have liquidation events if accrued interest dips the collateral ratio below 100.5%
  • The leverage interest rate will start on April 22, 2022
  • Saber pSOL:SOL
  • Mercurial pSOL:SOL
  • Serum pSOL:SOL
  • pSOL ask orders <= 0.995 SOL (selling 1 pSOL for 0.995 SOL) will be considered in pSOLReserve
  • pSOL bid orders <= 1.005 SOL (selling 1 SOL for 1.005 pSOL) will be considered in SOLReserve

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