Documentation Index
Fetch the complete documentation index at: https://docs.monolith.market/llms.txt
Use this file to discover all available pages before exploring further.
General FAQ
Who is behind Monolith?
Who is behind Monolith?
Monolith is built by the creators of Inverse.Finance DAO, DOLA stablecoin and FiRM fixed rate lending protocol.
How does Monolith keep stablecoins near $1 without reading market prices?
How does Monolith keep stablecoins near $1 without reading market prices?
It uses borrower choices as an indirect oracle. The share of free (redeemable) debt signals perceived redemption risk: too low → rates rise; too high → rates decay toward a floor. Combined with redemptions and the PSM, this self-correcting loop nudges price back toward $1.
Why offer both paid and free debt modes?
Why offer both paid and free debt modes?
They serve different user preferences and protocol needs. Paid debt funds staking yield and insulates collateral from redemptions; free debt pays 0% interest but is eligible for redemptions, forming an opt-in exit buffer that supports peg stability.
What happens during extreme oracle outages?
What happens during extreme oracle outages?
The protocol switches to reduce-only mode and disables liquidations/redemptions/write-offs until fresh data arrives. This prevents mispriced liquidations and redemptions while still allowing users to deleverage and exit safely.
Is the system upgradeable or governed after launch?
Is the system upgradeable or governed after launch?
Each instance has an immutability deadline. Before it, operators can tune select parameters. After it, sensitive controls permanently lock; only non-sensitive fee pulls/roles remain. This creates credibly neutral, governance-minimized instances.
How does the PSM differ from redemptions?
How does the PSM differ from redemptions?
Redemptions swap Coin for collateral from free-debt borrowers; the PSM swaps Coin for a reference asset. Redemptions always exist when free debt/collateral is available; PSM buys are disabled after immutability to cap exposure.
Who earns the interest and fees?
Who earns the interest and fees?
Most borrow interest is earned by Vault stakers after taking operator and global protocol fee.