While users' deposited funds are sitting idle in the backstop pool they are deposited as supply liquidity on the lending market to gain interest rates and/or liquidity mining rewards. When liquidation is needed, the funds are used to execute the trade with 5-10% profit. Finally, a novel on-chain algorithm is used to rebalance the liquidation proceeds back to the originally deposited currency, using a price feed to avoid price impact and potential cascading liquidation events.