New Mint/Redeem mechanism ( Not Final )
There are some differences from current versions.

The Mint process

  • When users mint CoUSD by FTM+COFFIN, the protocol does not burn COFFIN, stake COFFIN and keep xCOFFIN as one of collateral.
  • The ratio of FTM+COFFIN is determined by current collateral ratio, or the protocol uses specific percentage.
  • The mint process burns xCOFFIN partially as minting fee. It'll be xCOFFIN holders incentive.
  • There will be a threshold for Minting. In case the CoUSD price is below the threshold, users cannot mint.
    • By default, the threshold will be ($1.0033333).
    • Because, if the marketing price is below 1.003333, there is no benefit for uses to mint rather than swap on market.
    • The threshold is the same with FRAX finance.
  • Minting fee is 0.3 % by default.

The redemption process

  • User can get FTM+COFFIN ( or DAI + COFFIN in the near future), in (5) days later.
  • There will be a threshold for Redemption. In case the CoUSD price is above the threshold, users cannot redeem.
    • By default, the threshold will be ($0.993333).
      • The threshold is the same with FRAX Finance.
    • Redemption fee is 0.4 % by default.
    • Extra Redemption fee is 0.3 % by default in case of CoUSD is below 0.95.
  • There is redemption limitation for each addresses.
    • FTM amount up to (100 FTM) by default.
      • If exceed (100FTM), you will need to wait until your collection.
    • COFFIN amount up to (500) COFFIN by default.
      • If exceed (500) COFFIN, you will need to wait until your collection.
    • One time CoUSD redemption is up to (50) CoUSD.
    • Within (10800) seconds, all users can redeem up to (1000) CoUSD.
    • There is Redemption delay. After redemption, users need to wait for collections in (7) days.

Rebalancing & Collateral Ratio

  • The new collateral ratios will be determined by several tokens including DAI, yvDAI,, USDC and several LPs excluding COFFIN, xCOFFIN and CoUSD.
    • The protocol has a option to use fixed collateral ratio for mitning process.
  • After releasing rebalacing, at least within 2 months, only devs will handle the rebalancing without notice.
  • Because of Rebalancing, sometime FTM might be lacking.
    • In such case,
    • The protocol might ba back another token instead of FTM and COFFIN.
    • Or the redemption function might be suspended until getting FTM by rebalancing.