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How to use Ovens
To create an oven, you need to deposit USDC collateral, and choose a starting collateralization ratio, which defined by the following formula:
collateralization_ratio = usdc_collateral / f_asset_amount * f_asset_price_usdcExample: You want to mint fXAU (Synthetic Gold). Real-world gold is currently trading at 2000$ / oz. You deposit 5000 USDC and choose a collateralization ratio of 125% => You will mint: (5000 / 1.25) / 2000 = 2 fXAU.
Closing an oven is the opposite of opening an oven, which means you will need to burn the fAssets minted by the Oven, and you will recover the locked collateral.
Once an oven is opened, it is possible to re-use it for the same fAsset, so you don't need to have more than 1 oven for each type of fAsset at the same time.
You deposit more USDC into the Oven. Increases the c-ratio.
You withdraw collateral from the Oven, decreasing the c-ratio. You can only withdraw as long as the c-ratio is greater than the minimum c-ratio.
You mint more fAsset, decreasing the c-ratio. You can only mint as long as the c-ratio is greater than the minimum c-ratio.
You burn some fAsset, increasing the c-ratio.
Last modified 6mo ago