The protocol enables users to convert FTM + COFFIN to CoUSD by minting mechanism.
V2 Mint Restrictions/Parameters
V2 Minting has some restrictions by below parameters.
Users can suggest updating parameters on snapshot voting.
There will be a threshold for Minting.
In case the CoUSD price is below the threshold, users cannot mint.
By default, the threshold will be ($1.0033333).
Because, if the marketing price is below 1.003333, there is no benefit for uses to mint rather than swap on market.
The threshold mechanism is similar with FRAX finance.
Fixed Mint Collateral Ratio Flag and Fixed Minting Collateral Ratio
By default, this flag is true. And the fixed minting collateral ratio is 95%.
If the flag true, the protocol enables users to mint by fixed minting collateral ratio.
When the flag is false, the protocol enables users to mint by minting collateral ratio.
The minting collateral ratio is calculated by current collateral ratio and some parameters.
Minting Collateral Ratio Safety
By default, it is 2%.
If fixed collateral mint collateral ratio flag is false, this parameter works.
The minting collateral ratio is calculated by current collateral ratio and safety.
Current collateral ratio is always below 100% even though actual collateral ratio is more than 100%.
The minting collateral ratio is current collateral ratio plus the safety.
Minmum Minting Collateral Ratio
By default, it is 70%.
This is bottom line of minting collateral ratio.
By default, it is 0.3%.
We highly recommend you to Do Your Own Research and never use funds within the Coffin Finance that you cannot afford to lose. You won’t be compensated for any losses. All interactions with the associated smart contracts on Fantom Opera Network and software on Coffin Finance are at your own risk.