xDollar Space (V2) provides an additional option to collateralize stablecoins like USDC for XIM. For a small, 1% fee, users are able to mint or sell XIM to other stablecoins.
When a user deposits USDC into the xDollar Space platform, they will essentially be opening a special trove that accepts only USDC as collateral at a minimum collateral ratio of 101%. The liquidation and redemption functions are disabled in these troves and as long as the troves are open they remain active until users claim their USDC by simply closing them. Please note that there is a minimum of $2000 minting floor as well as minting ceiling for USDC trove.
The xPeg section displays a variety of stablecoin (USDC for now) that can be used as collateral to borrow XIM at a minimum collateral ratio of 101%
To borrow some XIM, simply click Open Trove, the popup section will appear.
Let’s start with this window and enter the amount of Collateral and the amount of Borrow
- Borrowing Fee -This amount is deducted from the borrowed amount as a one-time fee (1%). There are no recurring fees for borrowing, which is thus interest-free.
- Total Debt -The total amount of XIM your Trove will hold.
- Debt Ceiling - The maximum amount that can be borrowed against a particular collateral type.
- XIM Available - This is how many XIMs left for users to borrow against a particular collateral type of assets. The ratio between the amount of the collateral and the debt (in XIM) you are depositing.
- Collateral Ratio - The ratio between the amount of the collateral and the debt (in XIM) you are depositing.
First, decide how much stablecoin will be used as collateral and then decide how much XIM will be borrowed by either typing in the numbers.
Finally, Click the Confirm button to open the Trove.