> For the complete documentation index, see [llms.txt](https://docs.phase.cash/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.phase.cash/cash-stablecoin/usdcash.md).

# $CASH

The tokenomics for the CASH stablecoin are pretty simple and straightforward. CASH can only exist by either being backed by collateral in vaults or being burnable for a fixed premium in the [PSM](/cash-stablecoin/psm.md). The backing nor the price of CASH is **not** algorithmic.\
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To supplement borrowers having to lock in extra collateral value compared to the value of the received CASH, the protocol allows people to deposit their locked collateral into one-sided first- and third-party yield sources. [Liquidations](/liquidation/math-behind-liquidations.md) also happen in steps, saving more of your collateral and giving you more time to pay back.