👛Minting USDFC Step-by-Step

A comprehensive guide to minting USDFC stablecoins

Prerequisites

• An active Trove with FIL collateral

• Access to the USDFC application

• Connected wallet with enough FIL for gas fees

Overview

Minting USDFC allows you to generate dollar-pegged stablecoins against your FIL collateral. This guide walks you through the process of minting USDFC from an existing Trove.

Step 1: Access Your Trove

First, you need to access your existing Trove in the USDFC application.

1. Navigate to the USDFC application

2. Connect your wallet if not already connected

3. Go to the "Trove" section on the USDFC Dashboard page

4. You should see your current Trove details including collateral amount, debt, and collateral ratio

"Debt" is the Total debt = Borrowed amount + Borrowing Fees (cumulative)

The Trove dashboard showing current position details

Step 2: Select "Adjust Trove"

To mint additional USDFC, you need to adjust your Trove.

1. Click on the "Adjust" button

2. This will open the Trove adjustment interface

"Net debt" is Total Debt - Liquidation Reserve. In this example, 221.02 - 20 = 201.02 USDFC.

Screenshot after clicking the "Adjust Trove" button

Step 3: Specify Minting Amount

Now you need to specify how much additional USDFC you want to mint.

1. In the adjustment interface, locate the "Collateral" and "Net debt" input fields

2. Enter the amount of Collateral and USDFC debt you want to adjust

3. The system will automatically calculate your new collateral ratio

4. Ensure your new collateral ratio remains above the minimum required (recommended 150%)

"Total debt" is Net debt + Liquidation Reserve + Borrowing Fee (this mint fee). In this example, 220.00 + 20 + 0.10 = 240.10 USDFC.

The minting interface with the adjusted amount and collateral ratio calculation

Step 4: Review Transaction Details

Before confirming, review all transaction details carefully.

1. Check the additional USDFC amount you're minting

2. Verify your new collateral ratio

3. Review any fees that will be applied

4. Ensure you understand how this affects your liquidation risk

Step 5: Confirm and Mint USDFC

Once you're satisfied with the details, you can proceed with minting.

1. Click the "Confirm" button

2. Confirm the transaction in your wallet

3. Wait for the transaction to be processed on the blockchain

The confirmation screen with the "Adjust Trove" method

Step 6: Verify Minted USDFC

After the transaction is confirmed, verify that your USDFC was minted successfully.

1. Check that your Trove details have been updated with the new debt amount

2. Verify that the additional USDFC has been added to your wallet balance

3. If you don't see the additional USDFC in your wallet, you may need to refresh or check your transaction history on your wallet or a blockchain explorer

4. Check that your wallet balance reflects Borrowing Fee subtracted

Wallet balance = Total debt - Liquidation Reserve - Borrowing Fees (cumulative). In this example, 240.10 - 20 - 0.10 (this mint fee) - 1.02 (prev mint fee) = 218.98 USDFC.

Screenshot showing updated Trove details and wallet balance

Next Steps

Now that you've minted USDFC, you can:

• Manage your collateral to adjust your risk level

• Monitor your position to stay informed about your Trove's health

• Deposit USDFC into the Stability Pool to earn rewards

• Redeem USDFC for FIL when you're ready

Troubleshooting

• Transaction Failed: Ensure you have enough FIL for gas fees and that your collateral ratio meets the minimum requirement

• Cannot Mint More USDFC: You may have reached the maximum debt for your current collateral amount

• High Gas Fees: Try again when network congestion is lower or adjust your gas settings

Common Questions

Q: Is there a limit to how much USDFC I can mint? A: The amount of USDFC you can mint is limited by your collateral amount and the minimum collateral ratio requirement.

Q: Are there any fees for minting USDFC? A: Yes, there is a small minting fee that varies based on the current base rate. This fee helps maintain the stability of the protocol.

Q: How does minting more USDFC affect my liquidation risk? A: Minting more USDFC without adding collateral increases your debt, which lowers your collateral ratio and increases your liquidation risk.

Q: Can I mint USDFC in small increments? A: Yes, you can mint USDFC in any amount as long as your collateral ratio remains above the minimum requirement.

Related Topics

• The Trove System

• Mint & Borrow

• Protocol Fees

• Liquidation