xUSD Stability Pool
Details about staking xUSD in the Stability pool
The staked xUSD pool receives a share of all redemption & liquidation fees from the protocol. Users of the xBacked protocol that stake xUSD receive a a pro-rata distribution of these fees based on their ownership of the pool.
You will also receive discounted collateral from your staked xUSD, which is used in liquidations.
The way staking xUSD for liquidations works, means that bots are able to run liquidations on your behalf. You might stake 500 xUSD, and a bot could use 100 xUSD in a liquidation.
You would receive a discount to the market (e.g buy $100 of colalteral for 98 xUSD), the bot would receive 0.5% of the collateral, and the protocol will take a 1% fee.
You will be able to set prices for your xUSD to be used in liquidations, effectively acting like a limit order for an asset. For example, you might only allow liquidators to use your xUSD when the price of Algo is below $0.3, or some other support level.