🔦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

• System Overview

• Advanced Topics

• FAQs