Collateralized Minting

Documentation on minting JuiceDollars against a collateral.

When someone mints fresh JuiceDollars against a collateral, we call the result a position (opens new window). At the time of writing, the only smart contract that is approved to create new positions is the minting hub (opens new window). The notation is inspired by portfolio theory, where a position denotes an exposure to a specific asset. In the JuiceDollar system, a position always belongs to exactly one owner. Initially, this is the user that created the position, but ownership is transferrable through the standard functions of Ownable contracts. The owner can deposit collateral into the position and mint JuiceDollars up to a certain limit defined by the liquidation price. Anyone can challenge a position if they believe that the liquidation price is below the true value of the collateral, triggering an auction that serves the purpose of determining the market price of the collateral. Thanks to this mechanism, JuiceDollar does not depend on oracles and is very flexible with regards to the provided collateral.

To get started, open Lending (opens new window) and clone an existing cloneable type (including the app's default collateral), or pick a parent from Monitoring (opens new window). If you need a new collateral type that is not yet listed, use Propose position (opens new window). See Opening New Positions for the full walkthrough.