> For the complete documentation index, see [llms.txt](https://doc.zoofi.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.zoofi.io/berachain-eco/liquidity-vault-l-vault.md). # Liquidity Vault (L-Vault) Liquidity Vault (L-Vault) is a MakerDao-like product where users can deposit assets to receive a stablecoin similar to DAI. The difference is that our innovative Pooled CDP mechanism also releases the liquidity of the over-collateralized portion as a margin token, achieving 100% asset efficiency. In traditional over-collateralization models, users typically operate individual vaults, each generating its Collateralized Debt Position (CDP). ZOO Finance, however, innovates by aggregating vaults, which harmonizes the assets minted and obviates the necessity for singular liquidations. Within this aggregated structure lies a pooled CDP that encapsulates all circulating margin tokens, with the debt acknowledged as collective. Consequently, every margin token holder assumes a proportional share of this communal debt. ZOO Finance employs the Asset Adequacy Ratio (AAR) as a metric to gauge the health of the vault. A heightened AAR diminishes the leverage ratio applicable to margin tokens. Conversely, a diminished AAR indicates potential debt repayment risks associated with USB. Thus, maintaining the AAR balance is crucial. Initially, the L-Vault supports iBGT (a liquid staking derivative of BGT built with Infrared) and Bera, with plans to support more assets in the future. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://doc.zoofi.io/berachain-eco/liquidity-vault-l-vault.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.