> For the complete documentation index, see [llms.txt](https://jpydf.gitbook.io/jpy-defi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jpydf.gitbook.io/jpy-defi/reference/faq.md).

# FAQ

## General

**What is JPY DeFi?** It is the name of the service and protocol that issues JPYdf. JPYdf is the stablecoin name.

**What is JPYdf?** It is a crypto-asset-backed stablecoin that aims to track the value of the Japanese yen, issued on-chain on an over-collateralized basis against crypto assets and stablecoins ([What is JPYdf](/jpy-defi/readme.md)).

**Does JPYdf always trade at ¥1?** No. Its reference target is ¥1 per JPYdf, but its market price can rise above or fall below that target. Tracking the yen is not guaranteed, and JPYdf carries no right to redemption in yen ([Redemptions](/jpy-defi/borrowing-and-trove-management/redemptions.md)).

**Which chain can I use JPYdf on?** Ethereum mainnet.

## Borrowing

**What do I need to borrow JPYdf?** wstETH or USDC as collateral, 0.0375 ETH deposited as fixed gas compensation, and ETH for network fees ([Borrowing](/jpy-defi/borrowing-and-trove-management/borrowing.md)).

**How is the interest rate determined?** Borrowers set it themselves. The lower the rate, the more likely redemption is ([Interest Rates & Trove Delegation](/jpy-defi/borrowing-and-trove-management/interest-rates-and-delegation.md)).

**Can a Trove fail to close even when I can repay in full?** Yes: when closing would bring the branch-wide collateral ratio below the CCR, when a price failure is detected, or when it is the last remaining Trove in that branch ([Borrowing](/jpy-defi/borrowing-and-trove-management/borrowing.md)).

**What happens to delegation settings when I transfer a Trove NFT?** They are neither cleared nor updated. Clear them before transferring ([Interest Rates & Trove Delegation](/jpy-defi/borrowing-and-trove-management/interest-rates-and-delegation.md)).

**When am I liquidated?** When your collateral ratio falls below that collateral's MCR. Anyone can execute a liquidation, and it is not guaranteed to happen the moment the threshold is crossed ([Liquidations](/jpy-defi/borrowing-and-trove-management/liquidations.md)).

## Stability Pool

**What is the Stability Pool?** It holds deposited JPYdf that is used to offset debt during liquidations, with a separate Pool for each branch ([Stability Pool](/jpy-defi/stability-pool/earn.md)).

**How do borrowing interest and liquidations affect the Stability Pool?** Part of borrowing interest and upfront fees is sent to the Pool as JPYdf and recorded as quantities each depositor can claim in proportion to their deposit. In a liquidation, deposits decrease by the JPYdf used in offsets, and the corresponding collateral becomes claimable ([Interest, Fees and Liquidation Collateral](/jpy-defi/stability-pool/yield-sources.md)).

**Are the quantities and valuations I receive fixed?** No. Claimable quantities vary with borrowing and liquidation activity, and collateral valuations change with market prices; no fixed amount is guaranteed. The amount of JPYdf deposited does not stay fixed either.

## Collateral

**Is deposited collateral deployed?** In the dUSDC branch, part of the collateral can be deployed in external protocols. Collateral in the dwstETH branch is not deployed ([Collateral Strategies](/jpy-defi/collateral-and-pricing/strategies.md)).

**What happens to staking rewards on wstETH I use as collateral?** They remain in the borrower's collateral value as an increase in the stETH conversion rate ([Interest, Fees and Liquidation Collateral](/jpy-defi/stability-pool/yield-sources.md)).