🔦Core Mechanics
Explore the fundamental mechanisms of the USDFC Stablecoin Protocol
Overview
The USDFC Stablecoin Protocol introduces a variety of innovative features that enable users to efficiently mint, manage, and utilize USDFC, our decentralized, Filecoin-backed stablecoin. These core mechanics work together to ensure the stability, security, and usability of the protocol.
What You'll Learn
How to mint USDFC using Filecoin (FIL) as collateral
How the Trove system manages individual collateralized debt positions
How liquidations protect the protocol from undercollateralization
How the redemption mechanism maintains USDFC's peg to the US Dollar
How protocol fees contribute to the system's sustainability
Key Components
The Trove System: Individual vaults where users deposit FIL collateral and mint USDFC
Mint & Borrow: The process of creating new USDFC backed by FIL collateral
Liquidation: The mechanism for handling undercollateralized positions
Redemption: The process allowing USDFC holders to exchange for FIL at face value
Protocol Fees: The fee structure supporting the protocol's long-term sustainability
Related Resources
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