Glossary
Solvency Backstop
A solvency backstop is a fund, insurance pool, or other mechanism designed to absorb losses that collateral does not cover.
Plain-English meaning
In this game, Solvency Backstop is used as a vocabulary card for recognizing how market and technology concepts fit together. The short idea is: reserve for bad debt.
The term is not shown as a recommendation. It is included so players can learn the language they may see in exchange interfaces, wallet prompts, research notes, AI product pages, or on-chain analytics dashboards.
Why it belongs with DeFi Liquidation Queues
These terms explain how lending protocols organize liquidation work, price stressed collateral, and absorb losses.
When solving the puzzle, compare the job this term performs with nearby cards. A correct group usually shares a function, risk type, workflow, or market structure rather than simply sharing similar wording.
Where you might see it
You might encounter this term while reading educational explainers, product documentation, risk disclosures, market dashboards, or beginner guides. Always separate vocabulary learning from financial decision-making.