> For the complete documentation index, see [llms.txt](https://docs.secured.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.secured.finance/usdfc-stablecoin/core-mechanics.md).

# Core Mechanics

## 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**](/usdfc-stablecoin/core-mechanics/the-trove-system.md): Individual vaults where users deposit FIL collateral and mint USDFC
* [**Mint & Borrow**](/usdfc-stablecoin/core-mechanics/mint-and-borrow.md): The process of creating new USDFC backed by FIL collateral
* [**Liquidation**](/usdfc-stablecoin/core-mechanics/liquidation.md): The mechanism for handling undercollateralized positions
* [**Redemption**](/usdfc-stablecoin/core-mechanics/redemption.md): The process allowing USDFC holders to exchange for FIL at face value
* [**Protocol Fees**](/usdfc-stablecoin/core-mechanics/protocol-fees.md): The fee structure supporting the protocol's long-term sustainability

## Related Resources

* [System Overview](/usdfc-stablecoin/core-mechanics/system-overview.md)
* [Advanced Topics](/usdfc-stablecoin/advanced-topics.md)
* [FAQs](/usdfc-stablecoin/faqs.md)