Interestingly, stablecoins are minted when revenue is accrued. The reason for this is that if there is only one borrower borrowing 100 stablecoins at a 1% interest rate, then after a year this borrower needs to repay 101 stablecoins. But if only 100 stablecoins have been issued, there's no way for this borrower to repay its debt: as such when accruing revenue from
VaultManager contracts, the protocol mints stablecoins. The logic is that these stablecoins should in some way end up in the market for vault owners to buy them and repay their debt.