SunPLS

SunPLS — Complete Guide

Experimental floating peg stable on PulseChain · CDP + Stability Pool

What is SunPLS?

SunPLS is an experimental decentralized borrowing protocol with a floating peg. You deposit PLS as collateral and borrow SunPLS against it. Unlike USD-pegged stables, SunPLS tracks a slow-moving Redemption Value R that started at 1.227 WPLS. The market chases R; R does not chase the market. Inspired by the floating stable mechanism pioneered by RAI, but with critical improvements: R is stickier (10× damping), the rate is never negative, and depositors in the Stability Pool earn WPLS yield. No admin keys, no owner functions, no upgrades. Immutable and ownerless forever.

P vs R — The Two Prices

Two prices govern your vault at all times:

• P (Oracle Price) — the live AMM market price of SunPLS in WPLS, read from the PulseX pair via TWAP. This is what the market currently values SunPLS at.
• R (Redemption Value) — the protocol's sticky anchor. When you redeem SunPLS, you receive exactly R WPLS per SunPLS burned. R moves very slowly (max 1% per 30-min epoch) based on market conditions.

When P > R, the stability rate rises (borrowing costs more, discouraging new minting). When P < R, the rate falls toward zero. SunPLS's rate is never negative — borrowing is free at worst, never subsidized. R itself adjusts slowly over time to gently pull P toward it.

Stability Rate — What It Means for You

The stability rate is shown on your vault as "Rate (APR)". Applied continuously to your outstanding debt:

• Positive rate (+X%) — your debt grows over time. If you minted 1,000 SunPLS at +2% APR, after one year you owe ~1,020 SunPLS. Repay periodically to stay safe.
• Zero rate — debt balance stays fixed. Borrowing is free. This is the floor — the rate never goes below zero.

The rate updates each epoch (every 30 minutes). Anyone can trigger a new epoch using the "Trigger Epoch" button in the Rate Engine panel.

Step-by-Step: Opening a Vault

Understanding Your CR (Collateral Ratio)

Your CR is the most important number to watch:

The gauge on the "My Vault" card animates from green to red as your CR drops. A warning banner appears at the top of the page when your CR reaches dangerous levels.

Collateral Ratio Formula

Example: 1,500 PLS collateral, oracle price 1.0 WPLS/SunPLS, 1,000 SunPLS debt → CR = (1,500 × 1.0) ÷ 1,000 × 100 = 150%. If PLS price falls or your debt accrues interest, CR drops. If PLS price rises, CR improves.

Repay Options Explained

• Repay specific amount — enter any SunPLS amount, reduces debt by that amount instantly
• Repay to Safe (150%) — auto-calculates the exact amount needed to return to 150% CR. Use this after a price drop puts you in the redemption zone.
• Repay All & Withdraw Everything (Auto tab) — full vault exit in one transaction. Requires SunPLS equal to your current total debt in your wallet.
• Check Liquidation Risk — plain-language assessment of your current position and whether liquidators can currently act

Withdraw Options Explained

• Withdraw specific amount — enter PLS to withdraw; fails if result drops CR below 150%
• Withdraw Max Safe (Stay 150%) — automatically calculates and withdraws the maximum possible PLS while keeping CR at exactly 150%
• 5-minute cooldown — after every deposit, withdrawals are blocked for 5 minutes. This prevents flash loan exploits. The countdown is shown in the cooldown banner.
• Redeem SunPLS for PLS — opens the Vault Dashboard where you can burn SunPLS to get collateral PLS from undercollateralized vaults at the guaranteed R rate

Stability Pool — Earn WPLS

The Stability Pool lets SunPLS holders earn WPLS by providing liquidation backstop liquidity:

• Deposit SunPLS — your SunPLS earns WPLS proportional to your pool share. Rewards come from two sources: WPLS collateral seized in liquidations, and periodic WPLS fee distributions from the keeper.
• Pool liquidation — when a vault drops below 110% CR and the pool has funds, the pool instantly absorbs the debt (burns SunPLS) and receives the WPLS collateral. Your SunPLS balance may reduce proportionally, but your WPLS earnings increase.
• Claim anytime — WPLS rewards accumulate silently. Withdraw your SunPLS or claim just the WPLS whenever you want.
• Auction fallback — if the pool is empty, Dutch auction liquidation kicks in automatically. The pool is the preferred path.

System State Metrics

• Surplus Buffer — accumulated SunPLS from stability fees. The protocol's safety net against bad debt. A growing surplus means the protocol is healthy and profitable.
• Bad Debt — SunPLS debt not covered when a liquidation exhausted collateral. Tracked transparently. Offset by the surplus buffer; community members can call settleDebt() to burn SunPLS and directly cancel bad debt.
• System Equity — Surplus Buffer minus Bad Debt. Positive = protocol is solvent. Negative (shown red) = bad debt exceeds fees collected. This is a real-time solvency indicator.
• System Health — the weighted average CR across all vaults in the protocol. Green = healthy. A low system health means the protocol as a whole is undercollateralized.

Rate Engine & Oracle Panel

• Trigger Epoch — advances the rate engine clock. Anyone can do this (permissionless). The engine reads the latest oracle price, recalculates R, and sets the new stability rate for all vaults. Epochs are every 30 minutes.
• Update Oracle Price — stores a fresh snapshot of the AMM reserves. Required if the oracle is more than 24h stale (shown as "Oracle stale" in the Oracle panel). Costs only gas — no economic cost.
• Limiter Hits — how many times the Controller hit the DELTA_R_MAX cap per epoch. A high number means heavy P/R divergence is being corrected slowly.

Protocol Tools (Advanced)

• Clear Bad Debt — enter a "zombie vault" address (a vault with zero debt but recorded bad debt). You seize its remaining collateral for free. The bad debt is cleared. You are incentivized to find and clean up these edge cases.
• Settle Bad Debt — burn your own SunPLS to directly cancel global bad debt. This is not a personal repayment — it reduces the protocol-level bad debt counter. Community members can use this to improve system equity.
• Reconcile — nets the surplus buffer against bad debt. Called automatically inside most vault operations. Manually trigger it to force an accounting update at any time.

Emergency Unlock

If you have zero debt and cannot withdraw normally (e.g. oracle is offline), you can recover your collateral after 30 days via Emergency Unlock. The button appears automatically in the Deposit tab when the conditions are met. No special action needed — just click it.

Fees Summary

• Stability rate — dynamic, set each epoch. Always ≥ 0% (never negative). Shown as "Rate (APR)" on your vault.
• Redemption fee — 0.5% of the collateral paid out stays with the vault owner being redeemed against. Not charged to the redeemer.
• No deposit fee, no mint fee, no withdrawal fee, no cooldown
• Fee routing to pool — accrued interest (surplusBuffer) is periodically converted to WPLS off-chain and flushed to stability pool depositors via the keeper.

No admin keys · No upgrades · Immutable · Ownerless · PulseChain