Protocol
How the vault works
Positions, minting, and the 130% minimum collateral ratio.
Positions#
Each wallet has one position per synthetic asset, keyed by the asset's Pyth price id. A position stores the USDG deposited (6 decimals) and the synthetic minted (18 decimals).
Collateral ratio#
A position is healthy when its collateral covers at least 130% of the debt's value:
formula
collateral ≥ debt × price × 1.3
ratio = collateral / (debt × price) × 100%From that, the AAPL price at which a position becomes liquidatable is:
formula
liquidation price = collateral / (debt × 1.3)ℹ
Example
1,000 USDG backing 3 iAAPL is liquidatable once AAPL rises above 1000 / (3 × 1.3) ≈ $256.41.Minting and burning#
depositAndMintadds collateral and/or mints in one call. Minting checks health at the current oracle price.burnAndWithdrawburns synthetic debt and/or withdraws collateral. Health is checked only when debt remains.- Burning needs no allowance: the vault burns directly from your balance.
Limits#
| Limit | Rule |
|---|---|
| Minimum position | Any position with debt must hold at least 100 USDG of collateral |
| Debt ceiling | Each market has a maximum total of synthetic that can be outstanding, fixed when the market is registered |
The debt ceiling is set once at registration and can never be changed, so the vault stays keyless. Collateral deposits without debt have no minimum.
Fees#
The vault charges no stability, mint or borrow fee. You pay Robinhood Chain gas and the Pyth update fee when a price push is needed (currently 0 on Robinhood Chain; see Oracle Status).