Collateral and Liquidation
Vault Collateral Asset
A vault can only bridge through one particular collateral. If an owner wants to provide multiple collaterals, they will have to deploy a new vault for each pair.
Collateral division
Below we define some parameters to help define what elements make up the collateral:
| Type | Role | Formula |
|---|---|---|
Used Collateral | Currently used collateral | Backed Tokens * Secure Threshold |
Backed Tokens | Issued Tokens + Tokens to be issued | |
Maximum Collateral | Maximal amount of stable-coin that can be collateralized | Defined on Asset pairs |
Minimum Collateral | Minimal deposit | 30 DOT (Pendulum) 3 KSM (Amplitude) |
Security Threshold | Amount of collateral that enables a vault to store up to X amount of asset | See table |
Liquidation Threshold | Amount of collateral after which the vault will start getting liquidated | See table |
Premium Redeem Factor | Grants users redeeming at this level a premium on the collateralized asset | See table |
Collateral Data for Pendulum
| Stellar Asset | Asset | Security Threshold | Premium Redeem | Liquidation |
|---|---|---|---|---|
USDC | DOT | 160% | 140% | 125% |
MXN | DOT | 160% | 140% | 125% |
BRL | DOT | 160% | 140% | 125% |
XLM | DOT | 160% | 140% | 125% |
TZS | DOT | 160% | 140% | 125% |
NGNC | DOT | 160% | 140% | 125% |
EURC | DOT | 160% | 140% | 125% |
AUDD | DOT | 160% | 140% | 125% |
Collateral Data for Amplitude
| Stellar Asset | Asset | Security Threshold | Premium Redeem | Liquidation |
|---|---|---|---|---|
USDC | KSM | 160% | 140% | 125% |
MXN | KSM | 160% | 140% | 125% |
BRL | KSM | 160% | 140% | 125% |
XLM | KSM | 160% | 140% | 125% |
TZS | KSM | 160% | 140% | 125% |
NGNC | KSM | 160% | 140% | 125% |
EURC | KSM | 160% | 140% | 125% |
AUDD | KSM | 160% | 140% | 125% |
Liquidation
A Liquidation can happen for a variety of reasons:
The Vault fails to execute a redeem on time
In this case the user can either retry with another vault or liquidate a part of the vault
The vault is banned from accepting further requests for some time
The Vault falls below the Liquidation threshold
In this case, the entire collateral is liquidated
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