Borrowing $USC

$USC is an overcollateralized stablecoin. That means you need to deposit more collateral in order to borrow it.

To get started, users will need to open up a shuttle in order to borrow $USC. A minimum debt of $USC 100 must be maintained in this shuttle in order for it to remain active. Within this shuttle, users deposit accepted collateral in order to mint (i.e. borrow) $USC and the maximum allowable amount is determined by the minimum collateral ratio (USD value of collateral / USD value of debt).

A borrowing fee and a liquidation reserve will also be added to the user’s debt position.

  • Borrowing fee: a variable fee that is charged every time new $USC is minted

  • Liquidation reserve: a $USC 20 reserve is added to a user’s debt position, which is set aside as gas compensation for liquidators should the shuttle be liquidated. This deposit is “refundable” (i.e. burnt) if the shuttle does not get liquidated while active

A shuttle’s collateral ratio is continuously updated relative to the asset prices as reflected by our oracle, and is calculated as follows:

collateral ratio = (amount of collateral in USD / amount of $USC borrowed in USD) * 100

Commonly asked questions

What is a shuttle?

A shuttle represents your collateralised debt position (CDP). Within each shuttle, you will find a record of the amount of collateral you have deposited, and the amount of debt you have incurred.

What is the minimum amount of debt I can borrow?

You have to borrow at least USC 100.

That means, the minimum amount of collateral (with regards to $cdcETH) that you need to deposit is USD135.

However, we recommend that you deposit at least USD180 worth of cdcETH to borrow USC 100 of debt. This helps to keep your collateral ratio at a healthier level of 180%, which lowers your chances of getting liquidated or redeemed against.

What does it mean to keep my shuttle "active"?

If you are borrowing $USC, this means your shuttle is active. If you have repaid all your debt, your shuttle will close (i.e. inactive).

In order to keep your shuttle active, you need to maintain a debt of at least USC 100 in it.

For example, if you have borrowed $150 USC, you either can partially repay a maximum of $50 USC (you need to keep at least USC 100 in the shuttle to keep it active), or fully repay the $150 USC.

What fees will I incur?

The primary fee you will incur is the variable borrowing fee.

The liquidation reserve is ONLY charged to you if you get liquidated. Otherwise, this fee is cancelled off from your debt.

I only borrowed [$100 USC]. Why does my shuttle say I owe [$120.05]?

The $100 USC that you borrowed is the amount of $USC that gets sent to your wallet for your use.

However, as mentioned, you will incur 2 types of charges when your borrow $USC: 1) a variable borrowing fee, and 2) a 20 USC liquidation reserve.

So if the borrowing fee is currently 0.5%, then your total borrow amount = amount receive in wallet + liquidation reserve + borrowing fee = $100 + $20 + 0.05 = $120.05

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