FAQ's
We are currently building out the FAQ's, please check back regularly.
Last updated
We are currently building out the FAQ's, please check back regularly.
Last updated
Our FAQ's are currently offered for the unique differences between Liquid Loans & Barista.
Q. - What happens when you provide $USDL to the Barista Stability Pool. Important Note about Staking $USDL in the Barista Stability Pool A. - There are existing PLS and Loan gains in the Barista system. Whenever a new deposit happens in the protocol the system calculates the relative share and assigns the corresponding amount of PLS and Loan gains. So when someone deposits the USDL they should use the below calculation to check their claims. (PLS * priceOfPlsGain) + (USDL * $1) + (price of Loan * LoanGains) = initalUSDLDeposit * 1$ In the current scenario, if your deposit is 100 USDL your deposit becomes 82.95 and 10.91 PLS = 82.95 + (10.91 * 1.561334) + (0.025615 * 0.1891791) = $100 equivalent to your deposit. * Under certain conditions i.e there are no Liquidation Gains ($PLS) visible your total $USDL amount will be staked in the Stability Pool! You can also see the current LOAN APR, which is the reward token distributed by the Liquid Loans protocol for users who deposit USDL in the Stability Pool. It’s worth mentioning that Barista does not take any cut of the LOAN rewards, which means users get 100% kickback rate for their deposits.
Q. - Why can't I claim my $PLS Liquidation Gains from the Satbility Pool? A. - You can always claim any $PLS in Liquidation Gains manually by un-staking $USDL from Stability Pool. The amount claimed is proportional to the amount of $USDL you un-stake! The dApp will advise you. On main-net as there will be arb bots keeping $USDL close or pegged to $1, the auto rebalancing will happen more often than not in real time! Therefore most of the $PLS in Liquidation Gains should be close to zero as it has been auto rebalanced into $USDL and retaked in the Stability Pool for you gas free!
Q. - Why 4 tokens in protocol? A. - 1 - $PLS as collateral
2 - $USDL as the stable coin
3 - $LOAN as the native token
4 - $BEAN as the Barista incentive token
3 ways to use protocol: 1) Collateralize $PLS to mint $USDL (take out a loan) 2) Deposit $USDL into Stability pool to yield $LOAN and $PLS from liquidations 3) Stake $LOAN to yield $USDL & $PLS from borrowing and redemptions. Earn $BEAN just for being staked in this pool!
Q. - What is $LOAN?
A. - $LOAN is the secondary token issued by Liquid Loans. It captures the fee revenue generated by loan origination and redemption fees respectively. Staking it earns both $USDL and $PLS from those fees. Remember, the $LOAN token is not a stupid bolt-on governance token – it's an earner.
You will also EARN $BEAN for staking $LOAN
See more information on $LOAN rewards here -
Q. - Do I earn the same APR% in Barista Staking Pool for $LOAN? A. - Yes it is exactly the same as it is set by Liquid Loans and Barista does not charge any kickbacks.
