Managing Vaults

What is a Vault

A Vault is where a user borrows and maintains their loans, similar to the concepts of Vaults on other Collateralizad Debt Positions (CDP) platforms. OINDAO adopts a multi-chain design, aggregating wallet addresses from its Constellation Partners' network. This enables users to borrow and maintain their loans using native tokens from our Constellation Partners across wallets from multiple public blockchain networks all through a single platform, each of these wallets representing a standalone Vault.
Users will be able to monitor the following parameters in each Vault: i) the Dollar value of each of the user's collateral; ii) the Dollar value of the stablecoins borrowed; and iii) the resulting C-Ratio. Users are responsible in managing their C-Ratios such that they don't fall below the Minimum Collateralization Ratio (MCR).

How to manage Vaults?

Users can perform a total of four actions in managing their Vaults. These are:

1) Deposit

To set up a Vault and borrow stablecoins, users must deposit collateral assets that are accepted by the OINDAO as securities for the loans.

2) Borrow

Once users complete depositing collateral assets e.g., AVAX into their Vaults, they are able to borrow corresponding stablecoins e.g., aUSD up to the Minimum Collateralization Ratio (180% at default).
The system requires that each user borrows a minimum debt of $100 of stablecoins. In addition, users will need to set aside Liquidation Reserve (default $20 worth of stablecoins) from the borrowed loans to compensate gas fees in case of potential Liquidation Events.

3) Repayment

When users wish to close their Vaults, they can do so by repaying i) the original loan amount; and ii) any accrued interest fees associated with the loan.
Interest fees are paid in OIN. Each time a user decides to repay all or a proportion of the borrowed loans, a proportionate amount of the accrued interest fees are also deducted in the form of OIN tokens. As a result, users must make sure that there is a sufficient amount of OIN tokens in their wallets to facilitate the repayment. The amount of OIN tokens required are calculated using price-feeds provided by external Oracles.
OINDAO does not implement a repayment schedule for users on loans issued through the platform. Users can repay their loans at anytime, as long as users can maintain a C-Ratio above the Minimum Collateralization Ratio.

4) Withdraw

Users can withdraw their collateral anytime, as long as the C-Ratio is kept above the Minimum Collateralization Ratio.
Last modified 2mo ago