Stability Mechanism

Earn Pools also play a critical role in maintaining stability:

• If the stable-leverage pair becomes unstable due to excessive minting of stables or insufficient xTokens, stables in the Earn Pool are redeemed for reserve assets at their Net Asset Value (NAV).

• In stability mode, this operates like automatically buying ETH (or the reserve asset) at market price without slippage.

• Otherwise, it enables farming of real, unstable yields using stablecoins.