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Collateral Management Details

Illustration#

Collateral Ratios

Eligible Collateral#

The user may choose between the following eligible collateral types:

#TickerDescriptionTarget Collateral RatioEmergency Collateral Ratio
1XTZ or tezThe native currency of the Tezos Blockchain.300%200%

Baking#

Collateral Eligible for Baking#

The user may bake the following eligible collateral:

#TickerDescription
1XTZ or tezThe native currency of the Tezos Blockchain.

Choice of Bakers#

The minter has the freedom to select a baker of its choice.

Baking Rewards#

youves as a platform does not charge a fee to bakers or on the baking rewards. The conditions of any selected baker apply to the user.

Terms#

TermDescription
Available CollateralThe net sum of all collateral in a vault. This includes postings and withdrawals by the minter, baking rewards, changes resulting from step ins, changes resulting from bailout / minter conversion rights and holder conversion rights.
Collateral ValueThe current USD value of the available collateral.
Outstanding Stable TokensThe net sum of all youves tracker tokens of one type which have to be burned by the minter to terminate the vault. This includes minting and burning, liability interest rates, changes resulting from step ins, changes resulting form bailout / minter conversion rights and holder conversion rights.
Total Outstanding Stable TokensThe total number of outstanding youves tracker tokens of one type across the platform.
Collateral Ratio, Collateralization RatioThe USD value of available collateral divided by the USD value of outstanding youves tracker tokens.
Collateral FX, Collateral Exchange RateThe value of one unit of collateral measured in reference currency
Target Collateral RatioCollateral ratio which is enforced by the platform at the time of minting.
Emergency Collateral RatioIf the collateral ratio in a vault is observed at or below the emergency collateral ratio, the vault becomes available for a step in. This applies until the collateral ratio is re-established at or above the target collateral ratio.
Collateral UtilizationThe target collateral ratio divided by the collateral ratio.
Required CollateralThe amount of collateral, valued at the current exchange rate and given the current outstanding youves tracker tokens, which results in a collateral ratio at target level.
Step In, LiquidationOnce the collateralization ratio drops below the emergency collateral ratio, the vault becomes available for step in by third parties. They can post and burn a certain amount of youves tracker tokens in order to 1) get the vault back to target collateral ratio and 2) collect a step in bonus out of the excess collateral of the vault. In total a party providing a step in on a vault will collect collateral with a value of (1 + step in bonus) * posted youves tracker tokens. The step in is a crucial aspect of the incentive features of the platform to ensure adequate collateral backing.
Step In Bonus12.50%
Reference CurrencyUSD
Target Stable Token ValueThe outstanding youves tracker tokens times the target price.