# Nexus

**Deposit USV to Nexus to earn liquidation gains + CVGT token emissions.**

## What is the Nexus?

The Nexus acts as a primary safeguard to maintain the solvency of Convergent's system. Its function is to serve as a liquid reserve to pay off debts from liquidated Positions, thereby ensuring that the total USV supply is always supported.

Any user can deposit USV into the Nexus, allowing them to earn collateral (JitoSOL) from liquidated Positions. When a position is liquidated, a quantity of USV equivalent to the Position's remaining debt is burned from Nexus's balance to settle its debt. Simultaneously, the total collateral from the liquidated Position is transferred to the Nexus.

The Nexus is funded by users who stake USV with it. Over time these staking users proportionally lose a share of their USV deposits while gaining a proportionate share of the liquidated collateral (JitoSOL). Since the Position is expected to be liquidated at just below 110% collateral ratio, it is anticipated that these users will receive a higher value of collateral compared to the debt they pay off.&#x20;

## Why stake USV with Nexus?

Users who stake USV will be able to earn liquidation gains (in JitoSOL) and receive CVGT tokens that are dynamically emitted.\
\
Users can claim rewards from Nexus over time without withdrawing USV from the Nexus.&#x20;


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