# FAQ's

Here are key insights on how Barista compares to [Liquid Loans](https://docs.liquidloans.io/) 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

{% embed url="<https://docs.liquidloans.io/loan-rewards>" %}

#### **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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