Re-collateralize

With the unique design of our partially-collateralized stablecoin, the collateral ratio can be reduced depending on the market demand for TIA tokens. Comparing between Current Collateral Ratio (CCR) and Target Collateral Ratio (TCR), the protocol will sometimes see situations where it can be under-collateralized. To use our collateral assets in the most effective way, we implement 2 unique features, vaults and re-collateralize.

Vaults

The protocol automatically invests a maximum of 75% of the USDC collateral to generate a passive income to the VCTY single token staking pool, in other words, to the share-token holders. However, the income the vaults receive from the invested USDC collateral, can also be used to increase the CCR, to increase the amount of USDC collateral the protocol has.

Re-collateralise (under-collateralized)

The system can be under-collateralized in a situation where the TCR is increased after the system was running with a lower TCR for a long period of time. In this case, the rebalance function can be triggered to sell the amount of locked VCTY tokens in Treasury to achieve a sufficient amount of required USDC or BUSD collateral.