FAQ
(To be updated later. We will add more once we get questions. )
Initially, there is threshold setting for burn or tax. It's $0.98. If CoUSD price is below $0.98, some percent of transfer amount will be burned. If CoUSD price is above $0.98, some percent of transfer amount will be taxed.
Please refer below page about the percent.
About the threshold, we have plan to make a proposal for change.
Note that only the community members who hold relevant amounts of xCOFFIN at the time of the creation of the Snapshot block number would be able to vote on the proposal.
We use snapshot.org for voting. Snapshot is a decentralized voting system.
Note that only the community members who hold relevant amounts of xCOFFIN at the time of the creation of the Snapshot block number would be able to vote on the proposal.
Please try to change RPC Host as follow. If you cannot solve, please send DM with screenshots to dev on discord.
Our immediate focus is creating a true decentralized stable token. If we use centralized stable token as collateral, can we regard it as decentralized? We need to use non-fiat back currency as collateral for decentralization.
Plus, we believe in FTM potential value. So we are going to use native FTM as collateral.
We are planning to use it as profit sharing fund after DAO. We believe It should be used for long term holders.
The system tries to peg CoUSD equivalent to $1.00 USD, but the collateral ratios for minting and redemption are sometimes different.
Minting enables us to create new CoUSD tokens from FTM and COFFIN. The COFFIN token will be burned. The FTM is used as collateral. The ratio depends on current TCR by default. The ratio is updated every 60 minutes and up (by default) .
Anyone can update the ratio if 60 minutes has passed.
When updating TCR, the system checks the current CoUSD value in USD. If the value is above the peg, the TCR will decrease slightly. On the other hand, if the value is below the peg, the TCR will increase slightly.
Please read the following page also.
You can see the TCR on minting page.
Or you can see the ratio on Tool page as well.
Please check Redeem Page. Then,
please check "Output FTM · XXX%".
It's current Effective Collateral Ratio.
The protocol uses FTM as collateral. If FTM value goes up, collateral ratio also goes up.
As of 28th Oct, our collateral is 100% FTM, but we have plan to use it for lending to earn more FTM. And there are other ideas, e.g., rebalancing/delta-neutral/options.
Minting is create CoUSD (USD equivalent) from FTM + COFFIN.
When a user creates CoUSD, the protocol keeps FTM as collateral, and burn COFFIN.
The protocol returns FTM & COFFIN to users when the user request to convert CoUSD.
We highly recommend you to Do Your Own Research and never use funds within the Coffin Finance that you cannot afford to lose. You won’t be compensated for any losses. All interactions with the associated smart contracts on the Fantom Opera and software on Coffin Finance are at your own risk.
Last modified 1yr ago