Minting eUSD
Minting opens a collateralized debt position (CDP): eSPY in, eUSD out, with the position's health tracked continuously against the oracle price.
Requirements
| Rule | Launch value | Purpose |
|---|---|---|
| Minimum collateral ratio (MCR) | 150% | Every mint must leave the position at or above 150% |
| Minimum debt | 100 eUSD | Keeps positions large enough to be worth liquidating |
| Debt ceiling | 250,000 eUSD | Conservative launch cap, raised by governance as liquidity grows |
| Price freshness | ≤ 15 minutes, in-session | New debt can only open against a live market price |
| Mint fee | None | The only ongoing cost is the 2%/yr stability fee |
Worked example
Deposit 10 eSPY at $650 each ($6,500 of collateral):
| Action | Result |
|---|---|
| Maximum mint | $6,500 / 1.5 = 4,333 eUSD |
| Mint 3,000 eUSD | Collateral ratio 217%, comfortable buffer |
| eSPY falls to $585 (-10%) | Ratio 195%, still healthy |
| eSPY falls to $429 (-34%) | Ratio 143%, below MCR but above the 130% liquidation threshold: no new mints, not yet liquidatable |
| Ratio reaches 130% | Position becomes liquidatable |
Position management
- Mint is repeatable. Each additional mint re-checks the ratio at a fresh price. If eSPY appreciates, your capacity grows with it.
- Repay is partial or full. Repaying burns eUSD against your debt and strictly improves the ratio; remaining debt must be zero or at least the minimum debt. Anyone may repay on your behalf.
- Close position burns the full debt (including accrued fees) and returns all collateral in one transaction. Works outside market hours.
- Withdraw collateral is allowed any time the position stays at or above 150% at a fresh price.
The stability fee
Debt accrues a fixed 2% per year, compounded lazily into the position (there is no separate payment). The fee is minted to the protocol treasury when positions are touched. Example: 100 eUSD of debt becomes about 102 eUSD after one year.
Upside stays with you
Debt is in dollars; collateral is in eSPY units. If eSPY rises 30% while your position is open, you repay the same number of eUSD and withdraw collateral worth 30% more. Rising collateral also raises your mint capacity.