Depositing Collateral and Minting cUSD

Once your wallet is connected, please visit the vault page and select the vault that you are interested in.

Within the vault, you can begin by depositing your tokens, which will act as collateral for minting cUSD. When you mint cUSD, you are essentially borrowing cUSD from the protocol.

Please refer to the list of supported collateral.

To mint cUSD, you determine and deposit your desired amount of collateral. The debt, which you will take on in the form of cUSD, will then be automatically calculated to ensure a safe collateral ratio. You can also opt to disable the automatic calculation if you prefer to input the debt amount directly.

A minimum amount of 200 cUSD is required to open a vault, of which 20 cUSD serves as a liquidation reserve, which will be refunded when you repay your debt. You will also need to deposit an amount of collateral greater than the minimum stipulated by the prevailing Minimum Collateral Ratio (MCR).

The maximum amount of debt you can borrow is contingent on:

• Sufficient supply of cUSD in the vault.

• Your individual collateral ratio (ICR) being higher than the vault's MCR. This is to ensure debts are always overcollateralized. MCR will be set at 130% initially.

Do note that vaults with lower collateral ratios are more susceptible to liquidation and redemption by other parties.