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Stablecoin
Interacting with Ardana Vaults
In order to generate dUSD (or any Ardana stablecoin), a user will need to head to Ardana Vaults in the Ardana dApp. Ardana Vaults are the repositories that are used to secure loan collateral (ie. the CDP). Assets that are accepted as collateral can be leveraged to mint Ardana Stablecoins using smart contracts triggered through the Ardana Vaults.
A vault contains a single Cardano Native Token, and a user may have any number of vaults open for different Cardano Native Tokens.
A user interacts with a vault and creates a CDP by depositing approved collateral into a vault, once assets have been deposited into the vault, a user can generate Ardana Stablecoins against his collateral up to a cap. Once generated, the user will need to repay the principal debt plus the interest before he can release his collateral.
Process Overview of Creating a CDP and Repaying the Debt
- 1.Create & collateralize a vault: Bob creates a vault using the Ardana platform and funds it with an approved asset —in our example ADA— to the value of $15,000.
- 2.Generate stablecoins against the collateralized vault: Bob generates $5,000 worth of dUSD against his collateral, making his CTL 300%
- 3.Repaying the principal stablecoin debt & the stability fee interest: Let us assume that Bob used a vault that charges a 3% stability fee, and that he wishes to repay his loan after 6 months. In this case, his outstanding debt will be 5000+5000*(0.03*0.5), which is 5075. Bob repays his principal (5,000) and his stability fee interest (75), and he can now withdraw his ADA collateral from the vault.
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Additional collateral may be added to a vault to ensure the loan is sufficiently collateralized or to extend the loan, provided it is in the same native token asset as the initial deposit. This is an important facility, especially in the case where a user needs to maintain the loan but the market value of collateral falls. Conversely, if the collateral asset value rises, a user may choose to repay only part of the dUSD, release some collateral and maintain the loan rather than liquidating it completely.
Last modified 6mo ago
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