Minting and Redeeming
Minting and redeeming aUSD based on the current Collateral Ratio
Minting aUSD
In case a user wishes to mint aUSD, the system requires a value based on TCR worth of USDC and (1 - TCR) worth of ATM.
When TCR = 95% (which will be predefined at the launch), 1 aUSD can be minted with $.95 worth of USDC and $.05 worth of ATM
Redeeming aUSD
In case a user wants to redeem aUSD, the system returns a value based on ECR worth of USDC and (1 - ECR) worth of ATM.
When ECR = 80% (which will be predefined by the market conditions), 1 aUSD can be redeemed and the system will return $.8 worth of USDC and $.2 worth of ATM
Fee accumulation
Every action, be it Mint or Redeem, charges users with fee. Accumulated fees are used in AMOs.
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