💰Stablecoin Mint
How to interact with Autonomint's Deposit/Withdraw interface to borrow stablecoins against your crypto native asset and return them.
In order to get started, you need to have a crypto native asset in your wallet which can be utilised by you to generate stablecoin liquidity. Initially, we will be accepting ETH as collateral for borrowing stablecoins.
So, only if you have ETH in you wallet then you can proceed with connecting your wallet
Minting of Stablecoins
Click on Deposit & Withdraw to deposit ETH and mint stablecoins
Click on "Create a New Deposit" Button to deposit ETH as collateral
The below screen will appear. Here, you can select "ETH" as collateral and deposit the ETH amount corresponding to which you will be getting 80% stablecoin emission.
You will also find an option for selecting the "Strike Price for Call Options". In Autonomint, we have created a delta netural mechanism which helps protect our protocol against crypto volatility. This is enabled through a combination of various mechanisms but "Options" as derivatives is utilised to hedge the collateral downside and get the collateral upside through the Call Options. So, we will be providing you downside protection on your ETH deposited asset through which you can be rest assured that you will be getting the full value of your collateral inspite of the fall in value of collateral i.e. ETH. We will also be giving you the upside potential of your ETH through the selection of call option. Users can select the "Strike Price" at which they want to have a right but not the obligation to buy their ETH. All of the Strike prices have 1 month expiry. Below will be showcased before you confirm the transaction
Amount of AMINT that will be minted - AMINT stablecoin to be minted at a 80% LTV of the crypto collateral (ETH) value.
Options Fees - The option fees will be deducted from the minted stablecoin amount. This option fees depends on the volatility of ETH price and different protocol risk parameters.
APR - Interest rate charged on an annual basis on the borrowed AMINT amount
Downside Protection Amount - The amount of downside protection offered on your collateral. Our protocol will start with providing 20% downside protection to users and will increase the figure once the protocol is stabilised.
Click on "Confirm Deposit" to finalise the transaction.
Returning the Stablecoins OR Withdrawing ETH Collateral
In case of multiple deposits then the user can select the index for which he/she would like to withdraw the collateral or return the stablecoins borrowed.
User can select the index for which the he/she would like to withdraw the collateral and return the stablecoins
Here user can check the below data
ETH Deposited - Total ETH deposited as Collateral in this user index
ETH Price at Deposit - The price of ETH when the stablecoin was borrowed.
AMINT amount minted - AMINT minted at 80% LTV
Total AMINT - Total AMINT to be returned which is a combination of principal amount borrowed and interest charged as per the APR and time gone by.
APR at Deposit - Stablecoin borrowing APR during deposit
Downside Percentage at Deposit - The percentage of downside protection provided by protocol to user on the ETH deposited. This will be 20% in the genesis of protocol
Liquidated ? - Whether the ETH collateral is liquidated or not due to value of collateral falling below the -20% mark price.
Interest rate gained - The protocol will also be providing yield on ETH deposited back to the user as per the duration of deposit
ABOND Minted - Autonomint Protocol mints ABOND assets when the user returns back their stablecoin loan. This ABOND asset is issued to compensate for the half of the deposited ETH value as the user will be getting half of the deposited ETH value during initial Withdraw. You can read about this in the "ABOND" section
Amount Protected - User can check the total amount protected for the user by clicking on "View" button
Once user is willing to return the borrowed stablecoin then he/she can click on the "Withdraw for the First time" button.
Confirm the transaction by clicking on the "Confirm Withdrawal for the First time" button. You can check the second withdraw date also while making this initial withdrawal.
Here, user can check the second time withdrawal time after which the "Withdraw for the second time" button will get enabled. This time period is 1 month initially and will be reduced over time.
After the 1 month duration is completed then the "Confirm Withdrawal for the second time" button will be enabled and if user wants to withdraw then he/she can click on the same. While withdrawing, the user needs to return the ABOND asset as per the current ABOND price. So, it might happen that the user needs to return a lesser amount of ABOND asset for getting the collateral or ETH back.
In case the ETH price falls to below -20% of the deposited ETH price then the collateral will be liquidated.
So, this completes the user journey for the minting of stablecoins and returning of stablecoins.
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