Stable Vault

Currently, only BTCC can be used to interact with the vault to generate BTU. In the future, more mainstream certificate tokens may be added to the system. Users can simply interact with the HelloBTU frontend to create a vault, which will generate an invoice order. A fee will be charged when the user repays the loan. If the collateral BTCC price drops below the liquidation ratio or the loan is overdue, the order will be liquidated, and the user will not be able to recover all of the pledged BTCC.

How to Interact with the Vault

Step 1. Locking Collateral in the Vault to Generate BTU

By initiating a transaction to deposit BTCC through the website, users can use any non-custodial cryptocurrency wallet to initiate and confirm the transaction, generating a certain amount of BTU. Currently, each user can only have one borrowing order at a time.

Step 2. Adding Collateral to the Order

Users can view their orders on the website and initiate transactions to add more collateral to the order. The purpose of this operation is to prevent the order from being liquidated when the BTCC price drops.

Step 3. Repaying BTU and Paying Stability Fees

On the order interface, users can repay the owed BTU. Multiple partial repayments can be made, as long as the full amount is repaid before the due date. Once a user makes a partial repayment, the system will automatically adjust the status of the order, bringing it to a healthy state. Any excess BTCC will be returned to the user. If the repayment is sufficient to cover the entire debt, all of the pledged BTCC will be returned.

Watching Order Liquidation

Once the value of the collateral BTCC in an order drops below a certain ratio (liquidation ratio) to the value of the owed BTU, the invoice will be added to the watching order list. Overdue orders will also be added to this list (one week after the latest deadline). Anyone can liquidate watching orders. This is because the system needs to ensure that the value of the collateral is sufficient to support the stability of BTU. Liquidators only need to repay the BTCC amount on behalf of the pledger, and the system will return a corresponding amount of BTU to the liquidator at the current system price. The pledger will also be charged a liquidation fee for the liquidator. The price in the system is delayed by one hour, and liquidators can also use this to arbitrage. Such a liquidation reward mechanism encourages liquidators to liquidate watching orders.