ReSource
  • Welcome
    • Introduction
    • Protocol Architecture
  • Stable Credit
    • Stable Credit Lifecycle
    • Credit Risk
      • Overview
      • Risk Prediction and Mitigation
      • Underwriting
      • Network Assurance
      • Network Debt Account
      • Default Management
        • Obligation enforcement
    • Soft Peg
    • Stable Credits <> Fiat Loans
      • The Credit Pool
      • The Launch Pool
    • Configurability
  • Inter-Network Trade
    • Inter-Network Trade
      • Inter-Network Clearing House
      • How inter-network trade is facilitated
      • Export Risk
      • Export Risk Mitigation
        • Import Fee Structure
        • Import Fee Proceeds
        • Import/Export Limits
      • Varying Reference Currencies
  • Contracts
    • StableCredit.sol
    • AccessManager.sol
    • FeeManager.sol
    • AssurancePool.sol
    • CreditIssuer.sol
Powered by GitBook
On this page
  1. Stable Credit
  2. Credit Risk

Network Assurance

The Assurance Pool accumulates a portion of transaction fees levied on network accounts, and stores them to underwrite the network’s credit risk.

The exact portion of transaction fee proceeds captured for Assurance is determined by a network’s Reserve to Debt Target (RTD). The RTD target is configured by the AssuranceOracle contract and defines the desired ratio between all outstanding debts and reserved funds.

The Assurance Pool accumulates all network fee proceeds until it reaches its RTD target. When the RTD target has been reached, all additional incoming fee proceeds are rerouted to the network’s Excess Balance from which networks can choose to withdraw from the pool however is seen fit.

PreviousUnderwritingNextNetwork Debt Account

Last updated 1 year ago