Key parameters (v1)

Collateralization rate

  • Stability of brand labelled stablecoin are created by over collateralization

  • Collateralization rate varies from project to project

  • The convention of collateralization rate is 7:1, which is used by USDO1, USDF1, USTP and Synthetix

Liquidation threshold (i.e 110%)

  • When the price of the underlying collateral drops to certain threshold (i.e 110%), it will trigger system liquidation

  • The underlying collateral will be distribute proportionally based on the outstanding project's stablecoin

Reference Price

  • In v1 design, the value of the collateral is calculated based on the reference price, which is set on the pool creation. i.e The reference price of OIN is $0.2 and the Collateralization rate is 7:1. In order to mint 1 USDO1(stablecoin backed by OIN), we need 35 OIN

  • We will support dynamic peg soon

Minting Freeze

  • If the current token price is above the reference price set by the project, minting is allowed

  • If the current token price is below the reference price set by the project, minting is freeze. The minting process will automatically resume when token price reach the reference price

Stabilization fee (minimum 0.3%, maximum 50%, payable upon redemption)

  • OIN will take 0.3% of stabilization fee upon redemption, so the minting process is free

  • Each project will have different fee structure from 0.3% to 50%

  • The percentage above 0.3% will be collected and send to project's vault and subject to the project's discretion of how to utilize it

Minimum number of tokens to stake (min number to mint)

  • The minimum number of tokens in order to participate

The number of tokens rewarded for each block of mining

  • APY and duration varies from project to project

  • The APY for each project can be accessed here:

PreviousUsecasesNextTransparency

Last updated