💱Minting (Borrowing)

Establishing a CDP

In Oceanos Finance, users initiate a new CDP by pledging assets such as $ETH as collateral. This action enables them to borrow $ocUSD against their holdings. The borrowing process creates $ocUSD 'out of thin air,' which is then recorded as a 'debt' against the collateral.

Borrowing Constraints

The amount of $ocUSD that can be borrowed is constrained by the value of the collateral deposited. We maintain a careful watch on the Collateral Ratio (CR) to mitigate risk for each CDP. Initially, the minimum CR at which users can generate $ocUSD is set according to each asset. Should the CR breach liquidation threshold, the protocol triggers liquidation to manage risk and preserve the system's integrity.

Debt Management

Oceanos Finance empowers users to manage their debt responsibly. Users may borrow additional $ocUSD, provided they keep the CR within the acceptable range. They can also choose to repay their debt at any time. Responsibility for monitoring borrowing limits and debt repayment rests solely with the borrower.