Collateral Ratios

Target CR and Effective CR / The difference

Target CR
TCR (Target CR) is the ratio for reaching the target aUSD price ($1):
Usage
Description
Possible State
Behavior
Minting
TCR calculates and establishes one time per hour, with the possible step of 0.25%
1.aUSD < $1 (TWAP)
2.aUSD > $1 (TWAP)
1.The protocol increases TCR
2.The protocol lowers TCR
Effective CR
ECR (Effective CR) represents the level of aUSD collateralization:
Usage
Description
Possible State
Behavior
Redeeming
After redeeming, the user obtains the needed quantity of USDC + ATM tokens for each aUSD to attain an equivalent value in dollar terms
1.TCR < ECR
2.TCR > ECR
1.The protocol is overcollateralized
2.The protocol is undercollateralized
ECR=Total Collateral ValueTotal aUSD SupplyECR = \cfrac{\text{Total Collateral Value}}{\text{Total aUSD Supply}}ECR=Total aUSD SupplyTotal Collateral Value​

Usage	Description	Possible State	Behavior
Minting	TCR calculates and establishes one time per hour, with the possible step of 0.25%	1. aUSD < $1 (TWAP) 2. aUSD > $1 (TWAP)	1. The protocol increases TCR 2. The protocol lowers TCR

Usage	Description	Possible State	Behavior
Redeeming	After redeeming, the user obtains the needed quantity of USDC + ATM tokens for each aUSD to attain an equivalent value in dollar terms	1. TCR < ECR 2. TCR > ECR	1. The protocol is overcollateralized 2. The protocol is undercollateralized

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Minting and Redeeming

Last modified 1yr ago