> For the complete documentation index, see [llms.txt](https://palm-finance.gitbook.io/homepage/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://palm-finance.gitbook.io/homepage/tokenomics/pust-token.md).

# PUST Token

Palm Finance utilizes Liquity’s unique economic incentives to create a robust and scalable stablecoin.

By depositing collaterals, you can borrow PUST with 0% interest, an overcollateralized stablecoin that can be swapped for additional assets, which enable you to re-invest into Palm Finance and build leveraged positions.

At any time, 1 PUST can be redeemed with $1 of the underlying collateral less the redemption fee. Palm Finance is built on Liquity's economic model to ensure peg stability and efficient clearing.

{% content-ref url="/pages/UL3vWmooqBBaO62UCXWh" %}
[PUST Price Stability](/homepage/tokenomics/pust-token/pust-price-stability.md)
{% endcontent-ref %}

{% content-ref url="/pages/W0IVhp1GmfSYoH1umJwe" %}
[Redemption](/homepage/tokenomics/pust-token/redemption.md)
{% endcontent-ref %}