## Understanding the Heartbeat of Zero: A Deep Dive into the Stability Pool
Community Call #59 offered a granular look at one of the most innovative and critical components of the Zero protocol: the **Stability Pool**. The session was dedicated to demystifying its function, explaining how it secures the protocol, and detailing the incentives for users who participate in it.
### What is the Stability Pool’s Purpose?
The Stability Pool is the primary line of defense for the Zero protocol’s solvency and the peg of the Sovryn Dollar (DLLR). Its main job is to act as a source of liquidity to repay the debt of under-collateralized loan positions (called ‘Troves’) that are liquidated. By doing so, it ensures that the total supply of DLLR remains fully backed by BTC collateral.
### How Liquidations Work with the Pool
1. **Trove Liquidation:** When a user’s Trove falls below the minimum collateral ratio of 110%, it is flagged for liquidation.
2. **Debt Absorption:** The Stability Pool absorbs the Trove’s outstanding DLLR debt by burning an equivalent amount of the DLLR deposited within it.
3. **Collateral Redistribution:** In exchange for paying off the debt, the entire BTC collateral from the liquidated Trove is transferred to the Stability Pool.
4. **Rewards for Depositors:** This BTC collateral is then distributed pro-rata among all the users who had deposited their DLLR into the pool. This means depositors effectively acquire BTC at a discount, as the liquidated Trove had more than 100% collateral value.
### Incentives for Participation
Participating in the Stability Pool is one of the primary ways to earn yield within the Zero protocol. Depositors earn two types of rewards:
* **BTC from Liquidations:** As described above, they receive a share of the collateral from liquidated Troves.
* **SOV Rewards:** To further incentivize participation and bootstrap the pool’s liquidity, a portion of the protocol’s SOV emissions is distributed to Stability Pool depositors.
This deep dive highlighted how the Stability Pool creates a powerful, self-sustaining economic loop. It not only secures the protocol but also provides a compelling yield opportunity that simultaneously drives demand for the Sovryn Dollar.