Reserve Pool

The Reserve Pool compensates Stability Pool providers if a Trove's collateral ratio drops below 100% due to rapid oracle price fluctuations. Funded by debt borrowing fees and governance token subsidies, its capacity dynamically adjusts based on the total supply of aUSD tokens issued.

The Reserve Pool aims to mitigate market volatility, safeguard Stability Pool providers, and bolster overall system confidence.

Swap Pools

Apollon has integrated a Uniswap V2 fork as its decentralized exchange (DEX), incorporating dynamic features such as a balance fee and automatic Apollon debt repayment upon liquidity removal from pools.

Balance Fee

The balance fee is initially based on the static Uniswap swap fee but dynamically increases if a trade shifts the DEX price away from the Oracle price. This incentivizes users to avoid trading against the pegged price.

Automatic Debt Repayment

When a user withdraws liquidity from a pool, the protocol automatically attempts to repay any potential Apollon debts from the user's Trove. Only after settling these debts are the remaining tokens credited to the user's account. Liquidity pool tokens are non-transferable to enforce this restriction, aiming to reduce delta-neutral Apollon positions in balances.