Skip to main content
Each wrapped currency has one vault. The vault holds dollars, tracks the value of all currency tokens in circulation, and lets anyone mint or redeem at the oracle rate.

​
The accounting

  • Assets: dollars held by the vault.
  • Liability: dollar value of all wrapped currency outstanding.
  • Equity: assets minus liability.
  • Collateral ratio: assets divided by liability.
A mint brings in the dollars that back the new tokens. Backers can add extra equity so the vault has room to absorb currency moves.

​
When a currency moves

If the currency strengthens against the dollar, the vault’s liability rises. Backer equity absorbs that loss first. If equity runs out, redemptions receive the vault’s remaining value pro rata. No holder is allowed to exit ahead of everyone else.

​
Fees and controls

Minting and redemption charge 0.3% while the rate is fresh and 1% while it is stale. Eighty percent of those fees belongs to backers; 20% goes to the protocol. A guardian can pause minting and deposits. Redemption and withdrawal cannot be paused.