# How it works? (Core Mechanics)

1. **Collateral Staking**
   * Users stake base tokens (e.g., SOL, ETH, or stablecoins) into selective TRS pools.
   * Staked assets are lent out to enable leveraged long/short positions on meme tokens.
2. **Leveraged Trading**
   * Traders open long or short meme token positions against curated pools.
   * TRS logic enables synthetic exposure without directly holding the meme token.
3. **Interest & Yield**
   * Lenders earn yield from borrower interest.
   * Interest rates vary dynamically based on real-time utilization, volatility, and collateral quality.
4. **Liquidation Protocol**
   * If the net asset value of a position falls below the maintenance margin, liquidation is triggered.
   * Advance version includes an AMM price sanity check to prevent oracle-based liquidation exploits.