Mint is the tab where you can release a new mirrored asset token (mAsset) by specifying its collateral ratio.
To release an mAsset you should:
- Select a collateral token — UST or another mAsset (UST for example)
- Choose an mAsset you want to mint (mTSLA for example)
- Specify the collateral
- Specify a c-ratio (in percent). Be warned that if the position goes below the minimal collateral value, any user can have their position immediately liquidated
- Press MINT
- Enter your wallet password and confirm the transaction by pressing Submit
- Done. mAsset launched!
Collateral ratio (C-ratio)
There exists a minimal C-ratio. It’s set by the community for each mAsset by creating polls and voting amongst MIR stakers. The safest C-ratio is the minimum + 50%.
When the position goes below the minimal collateral level, any user can liquidate their position immediately.
A mirrored stock of Tesla — mTSLA
1 mTSLA price = 670 UST
Minimal C-ratio — 150%
The user purchases 1 mTSLA and specifies a C-ratio of 200%, that means they have to pay 200% of the mirrored asset’s price, 670 x 2 = 1340 UST
The price of mTSLA rises to 800 UST, which means the user’s C-ratio has lowered to 1340 / 800 x 100% = 167.5%. This level of collateral is very close to the minimal value and the user should increase their collateral in UST or burn part of the mAsset to increase the C-ratio. Worst case scenario is that the position gets liquidated. You may increase your collateral volume at the My Page tab.