Minting and Burning dUSD

The protocol generates dUSD, a decentralized, over-collateralized stablecoin backed by the collateral deposited in the DexToro protocol. dUSD is an ERC-20 token used by markets integrated with DexToro.

Minting and burning affect an account's available balance. dUSD must be deposited before minting and withdrawn after burning.

Once a liquidity position has been created by delegating collateral, liquidity providers can take out an interest-free loan of dUSD by "minting" it. dUSD is minted by calling the mintUsd function. The debt of the position increases by $1 for each dUSD token minted.

Liquidity providers may not mint dUSD such that their position’s c-ratio drops below the Issuance C-Ratio for the relevant collateral type. The Issuance C-Ratio for each collateral type is set by the DexToro Protocol. The getCollateralConfiguration function will return the Issuance C-ratio, represented as an integer with 18 decimal places.

dUSD can also be used to repay loans by "burning" it. dUSD is burned by calling the burnUsd function. This decreases the debt of a position by $1 per dUSD burned, regardless of whether this debt was accrued from minting dUSD or from debt distributed to it by a market. To reduce the collateral delegated to a position, the debt must be repaid such that the resulting C-Ratio is above the Issuance C-Ratio.

dUSD is integrated with Chainlink's CCIP to allow for secure, decentralized cross-chain transfers of dUSD between networks with a DexToro deployment.