> ## 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

> Frequently asked questions about Monolith

# General FAQ

<AccordionGroup>
  <Accordion title="Who is behind Monolith?">
    Monolith is built by the creators of Inverse.Finance DAO, DOLA stablecoin and FiRM fixed rate lending protocol.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="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.
  </Accordion>

  <Accordion title="Who earns the interest and fees?">
    Most borrow interest is earned by Vault stakers after taking operator and global protocol fee.
  </Accordion>
</AccordionGroup>