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  1. Technical

Protocol Mechanics

PreviousEMBR Official DocumentationNextBorrwing

Last updated 1 year ago

TL;DR:

  • User deposits BTC.b into a Trove

  • Collateral ratio can be at minimum 110% in and taken in $ESC (a USD pegged stable coin)

  • 0% interest rate, pay back loan at any time

  • Peg Defense

    • Stake ESC in stability pool to earn BTC.b from liquidated positions & EMBR

      • Staked $ESC is used to rebalance Troves when liquidated, taking $ESC from the stability pool and dispersing BTC.b back to Stability Pool stakers

    • Redeem $1 in BTC.b at any time with 1 $ESC, will be unprofitable when 1 ESC > $1

  • Stake EMBR to earn borrowing & redemption fees

Flowchart of fees, inflows, and outflows on EMBR