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For the complete documentation index, see llms.txt. This page is also available as Markdown.

FAQ's

Here are key insights on how Barista compares to Liquid Loans and how the Stability Pool works.

Q: What happens when I deposit $USDL into the Barista Stability Pool?

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.

Q: Why can’t I claim my $PLS gains from the Stability Pool?

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.

Q: Why are there 4 tokens in the protocol?

A:

  1. $PLS – Used as collateral

  2. $USDL – The decentralized stablecoin

  3. $LOAN – Native reward/staking token of Liquid Loans

  4. $BEAN – Barista’s incentive token

3 Ways to Use the Protocol:

  1. Collateralize PLS to mint USDL

  2. Deposit USDL into the Stability Pool to earn LOAN & PLS

  3. Stake LOAN to earn USDL, PLS, and additional BEAN incentives

Q: What is $LOAN?

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

LogoLOAN Rewards | Liquid Loans Docsdocs.liquidloans.io

Q: Do I earn the same APR% in Barista's $LOAN Staking Pool?

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.

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