Zircon Docs
Search…
⌃K
🔹

Choosing the Stable side

In our MOVR/USDC example, we care about farming with USDC. Let’s select the Stable tab and locate our pool.
You’ll see some parameters like yield APR for farming, liquidity, and the Health Factor (HF). The HF tells you how balanced this vault is and whether it’s a good idea to join it right now.
Think of the Health Factor as a bond rating (the ‘AAA’, ‘CCC’ letters you often hear about in financial news). The Health Factor can be High (safe to use), Medium (under stress, but still fully covered) and Low (the vault is heavily imbalanced).
Stable vaults may become unbalanced when the token on the other side of the pool goes down very quickly (for example, -50% in a week). When this happens, Stable withdrawals may be partially slashed until the pool restores balance.
Because of this, you should always pay some attention to the token on the other side of the pool. A USDC vault paired with something like ETH or BTC can be considered an AAA, high quality bond. But supplying Stable liquidity to a token called DogeCumMunRocket is much more risky (and the pool may never rebalance again).
​