Vault

When you deposit supported collateral to mint cUSD, you are borrowing against that collateral.

In order to efficiently manage your collateral and associated debt, Chymia creates a vault, which is tied to a unique FVM address - each address can only have one vault for each specific type of collateral.

The vault records two balances:

1. Collateral balance

2. Debt balance of cUSD

You can manage these balances by increasing or decreasing the amount of collateral and debt. Changing these balances will directly affect the vault’s collateral ratio. When you fully repay the debt balance, the vault will be closed.

Additionally, when you open a vault, you can also determine if the vault can be redeemed by other users. You can pay a non-redemption fee to disable the vault from being redeemed by other users.