Collateralized Vaults
Last updated
Last updated
UNIT vaults are collateralized using assets admitted by The UNIT governance. Currently, ETH is the sole collateral source, but The UNIT governance will soon consider other collateral sources, such as the native tokens of BSC, Polygon, Near, and others**.** To mint TINU, participants must deposit ETH into UNIT vaults.
Each vault only contains one particular asset and a set of risk parameters to ensure the stability of TINU:
Debt Ceiling
Liquidation Ratio
Liquidation Fee
The minimum collateralization level to mint TINU depends on the 1-year price range in UNIT of the asset used in the particular vault. This ensures that the vault will be protected against high-volatility events.
TINU is burned to retrieve the collateral in the vaults. Every time TINU is burned, a fee depending on the staking level will be charged and distributed to the remaining staking participants.
Participants control their vaults as long as the collateral doesn’t fall below the liquidation level.
To recover the collateral, vault owners must return all the TINU to the vault. As long as there is a TINU debt to the vault the collateral remaining must be greater than the minimum deposit value of 100 TINU.
Suppose an account's collateralization ratio falls below the liquidation level. In that case, the account owner will have 72 hours to bring the vault back over the liquidation level by adding more collateral or burning TINU. However, after 72 hours, anyone can claim the collateral locked in the contract by burning the required amount of TINU set in the liquidation parameters.
The vault owner will pay a liquidation fee for the risk added to the system.
We have deployed TINU vaults in the Sepolia Test Network. Here are the contract addresses as of 2023-06-26:
TINU: 0x510d78536accD71FC43a10DAB0183A12523E3851
unitPriceFeed: 0x4Bd57566cbe514df063BA4F9f99eb01b442FA58E
vault: 0x5FC50DBa21b2709c15289a57be762E9Ec166e273
unitRouterV1: 0x0aded79406574aAf1e85330a1f83c27e60f6D841
