# Introduction ## Unlocking Liquidity While Preserving Yield **Unstable Protocol** enables users to borrow against yield-bearing assets without sacrificing their staking rewards. The protocol's stablecoin, **nUSD**, is overcollateralized by productive assets like liquid staking derivatives that continue generating returns while serving as collateral, creating a unique capital efficiency advantage. ### Capital Efficiency By enabling users to maintain exposure to staking rewards while accessing liquidity, Unstable creates a powerful capital efficiency multiplier effect: * **Dual-purpose assets**: Collateral simultaneously secures loans and generates yield * **Self-improving collateral ratios**: As yield accumulates, position health naturally strengthens * **Reduced liquidation risk**: Growing collateral value provides increasing protection against market volatility ### Robust Stability Mechanisms Every nUSD is backed by more than $1 of high-quality collateral: * **Overcollateralization**: Minimum 1XX% collateral ratio (varies by asset) * **Yield-bearing collateral**: Assets like stETH, rETH, and other LSDs that grow in value over time * **Automated liquidations**: Swift protection against undercollateralization * **Redemption mechanism**: Direct 1:1 USD value redemption for underlying collateral *** --- # Agent Instructions: 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: ``` GET https://docs.unstable.money/readme.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.