FAQ's
Last updated
Last updated
Here are key insights on how Barista compares to and how the Stability Pool works.
A: When you deposit $USDL, the system calculates your share of existing gains in PLS and LOAN. Your deposit is then split proportionally based on the current value of gains. Here's a simplified formula:
(PLS × PLS Price) + (USDL × $1) + (LOAN × LOAN Price) = Initial $USDL Deposit
Example: If you deposit 100 $USDL, the protocol might allocate it like this:
82.95 $USDL
10.91 $PLS
0.0256 $LOAN
Totaling approximately $100 value.
Note: If no liquidation gains (PLS) are available at the time, your full deposit remains in USDL form until gains are realized.
You’ll also earn 100% of LOAN rewards from the Liquid Loans protocol, Barista takes no cut.
A: You can claim your $PLS liquidation gains by unstaking from the Stability Pool. The amount of PLS you receive is proportional to how much $USDL you withdraw.
However, on mainnet, arbitrage bots keep $USDL close to its $1 peg. This triggers auto-rebalancing, which reinvests liquidation gains back into the pool gas-free, meaning visible $PLS balances may often appear close to zero.
A:
$PLS – Used as collateral
$USDL – The decentralized stablecoin
$LOAN – Native reward/staking token of Liquid Loans
$BEAN – Barista’s incentive token
3 Ways to Use the Protocol:
Collateralize PLS to mint USDL
Deposit USDL into the Stability Pool to earn LOAN & PLS
Stake LOAN to earn USDL, PLS, and additional BEAN incentives
A: $LOAN is the core reward and fee-sharing token for Liquid Loans. It captures revenue from loan origination and redemption fees. When staked, it earns both $USDL and $PLS, and in Barista, it also earns $BEAN.
This isn’t just another governance token—$LOAN is a yield-generating asset.
Learn more about $LOAN
A: Yes, the APR is exactly the same as set by the Liquid Loans protocol. Barista does not charge any fees or take any share of the rewards, you earn the full APR.
