Understanding Stability Pools

When you deposit $AXD into a Stability Pool, you help secure the system — and get rewarded for it.

Introduction

Aesyx users can earn yield on their $AXD by depositing into Stability Pools.

Yield is earned through two primary sources:

• Borrower Interest paid by active Troves

• Liquidation Proceeds when undercollateralized Troves are liquidated

When you deposit $AXD into a Stability Pool, you help secure the protocol — and get rewarded for taking on a share of liquidation risk.

How to Earn $AXD Yield

Step 1: Connect Your Wallet

Press “Connect Wallet” and choose the wallet provider tied to the account holding your $AXD tokens.

Step 2: Navigate to the Supply Page

Once connected, head to the “Supply” page.

There, you’ll see a list of available Stability Pools you can deposit into — each corresponding to a different Collateral type.

For each Pool, you’ll be able to view key metrics such as:

• Total Deposited Amount

• Current Earn APY

• Available Rewards

Stability Pools act as a liquidation backstop for the protocol.

By depositing, you take on some bad debt risk — and are compensated through borrower Interest and liquidation rewards.

Step 3: Select Amount to Deposit

Click the “Supply” button next to the Stability Pool you want to enter.

In the modal that appears:

• Choose how much $AXD you want to deposit into the Pool.

There’s no mandatory lock-up — your funds remain accessible for withdrawal when needed.

Step 4: Approve Token Transfer

After selecting your deposit amount, click “Confirm.”

Your wallet will prompt a transaction or signature request.

This approval allows Aesyx smart contracts to manage your $AXD deposit securely on Avalanche.

You must approve this before making your first deposit into any Pool.

Step 5: Perform the Deposit Transaction

After approval, one final transaction will be needed to officially deposit your $AXD into the Stability Pool.

Once confirmed, your deposit will start earning rewards right away — typically within a few seconds.

You can track your yield and manage your deposit anytime through the Supply page.

📉 How Stability Pools Work

When you deposit $AXD into a Stability Pool, you're not just parking your tokens—you’re actively participating in liquidations. As undercollateralized Troves are liquidated, your $AXD is used to repay their debt. In return, you receive a proportional share of the liquidated collateral plus a 5% bonus.

This means:

• You lose the $AXD you deposit over time, as it’s burned to cancel bad debt.

• You gain the underlying collateral (like sAVAX or BTC.b) at a discount.

• The system rewards you with an extra 5% on top of the collateral’s value, effectively making you the buyer of distressed assets at a bargain.

It’s a high-efficiency mechanism to stabilize the protocol—designed for users who want exposure to premium assets at a discount while supporting the system’s health.