# Protocol Mechanics

<figure><img src="https://3560985130-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FmFr0Tq5CdzokLMUxi2HZ%2Fuploads%2FQFzRbACJ2xk6AoaWRNAP%2Fimage.png?alt=media&#x26;token=2cf8858b-71fd-4d03-acd0-31550a41bbd7" alt=""><figcaption><p>Flowchart of fees, inflows, and outflows on EMBR</p></figcaption></figure>

## TL;DR:

* User deposits BTC.b into a Trove
* Collateral ratio can be at minimum 110% in  and taken in $ESC (a USD pegged stable coin)
* 0% interest rate, pay back loan at any time
* Peg Defense
  * Stake ESC in stability pool to earn BTC.b from liquidated positions & EMBR
    * Staked $ESC is used to rebalance Troves when liquidated, taking $ESC from the stability pool and dispersing BTC.b back to Stability Pool stakers
  * Redeem $1 in BTC.b at any time with 1 $ESC, will be unprofitable when 1 ESC > $1
* Stake EMBR to earn borrowing & redemption fees