Stability Pool

The Stability Pool is a foundational component of Sigma Money, engineered to maintain systemic equilibrium and offer yield opportunities to participants.

Purpose and Incentives

Users can deposit bnbUSD or USDT into the Stability Pool to earn protocol incentives. This mechanism not only supports peg maintenance but also allows depositors to generate sustainable returns.

Peg Stabilization Mechanism

The Stability Pool helps ensure that bnbUSD consistently tracks the value of USD by executing automated swaps between bnbUSD and USDT, based on prevailing market conditions:

• If bnbUSD is trading below peg: The pool swaps USDT for bnbUSD to restore parity.

• If bnbUSD is trading above peg: The pool swaps bnbUSD for USDT to bring the price back in line.

These operations rely on pricing data from Chainlink oracles and PancakeSwap’s EMA, ensuring accurate, real-time valuations that support price stability while maximizing yield efficiency for depositors.

Depeg Protection

In the unlikely event of a USDT depeg, the protocol immediately halts peg maintenance activities and temporarily disables new deposits to the Stability Pool. This protective measure is designed to safeguard user funds and preserve overall protocol integrity.

Rebalancing and Liquidation Integration

During rebalancing or liquidation procedures, the protocol may redeem bnbUSD from the Stability Pool. If the pool does not contain sufficient bnbUSD, any available USDT is used to repurchase bnbUSD at a rate not exceeding 1:1, thereby contributing to peg restoration without compromising system stability.

Flexible Execution Modes

To adapt to varying market conditions, these operations can be executed either synchronously or asynchronously. This execution flexibility ensures the protocol can maintain liquidity and peg stability even under volatile circumstances.