# PUST Token

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="pust-token/pust-price-stability" %}
[pust-price-stability](https://palm-finance.gitbook.io/homepage/tokenomics/pust-token/pust-price-stability)
{% endcontent-ref %}

{% content-ref url="pust-token/redemption" %}
[redemption](https://palm-finance.gitbook.io/homepage/tokenomics/pust-token/redemption)
{% endcontent-ref %}
