> For the complete documentation index, see [llms.txt](https://docs.powercity.io/litepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.powercity.io/litepaper/earn-lending-protocol/stability-and-staking-pools.md). # Stability & Staking Pools ### Stability Pool The Stability Pool Providers are the first line of defense in maintaining the protocol's solvency. These providers absorb and cancel the debt from defaulted Vaults. When people participate in the Stability Pool, they are rewarded for stabilizing the protocol. When a Vault is up for liquidation, $PXDC from the Stability Pool is used to pay off the liquidated Vault(s), and the underlying collateral ($PLSX) is returned to the Stability Pool providers. These providers benefit from a net positive return. Stability Providers receive $EARN token rewards proportional to the amount of $PXDC deposited in the Stability Pool. There is no lock-up period for $PXDC stability providers, and they can withdraw their tokens at any time. ### Staking Pool - $EARN Token Stability providers are rewarded with $EARN tokens which they can stake into the staking pool. By doing so, they receive a portion of the borrowing and redemption fees, paid out in $PLSX and $PXDC. Rewards can be claimed by users at any time, and there is no minimum lockup period. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.powercity.io/litepaper/earn-lending-protocol/stability-and-staking-pools.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.