The backstop
Capital staked against one barrel, absorbing that barrel's bad debt first, in exchange for its share of the Overflow. Per barrel. Never pooled.
BARRELS ACCEPTING BACKSTOP
Staking here means you absorb BRL-001's bad debt before its lenders do, in exchange for a share of this barrel's interest and liquidation revenue. It is a paid risk, not a yield farm.
Your stake is exposed to this barrel only. It cannot be pulled into another barrel's shortfall, and no other barrel's backstop can cover this one.
Staking here means you absorb BRL-002's bad debt before its lenders do, in exchange for a share of this barrel's interest and liquidation revenue. It is a paid risk, not a yield farm.
Your stake is exposed to this barrel only. It cannot be pulled into another barrel's shortfall, and no other barrel's backstop can cover this one.
Staking here means you absorb BRL-003's bad debt before its lenders do, in exchange for a share of this barrel's interest and liquidation revenue. It is a paid risk, not a yield farm.
Your stake is exposed to this barrel only. It cannot be pulled into another barrel's shortfall, and no other barrel's backstop can cover this one.
Staking here means you absorb BRL-004's bad debt before its lenders do, in exchange for a share of this barrel's interest and liquidation revenue. It is a paid risk, not a yield farm.
Your stake is exposed to this barrel only. It cannot be pulled into another barrel's shortfall, and no other barrel's backstop can cover this one.
Backstoppers take the first loss. If a barrel's liquidations fall short — because nobody bid on the collateral, or because the price gapped through the threshold — your stake is written down before any lender is touched. On a T4 barrel that can mean losing all of it. The premium exists because the risk is real.