How to use Unit protocol

Simple version:

  • Choose token (collateral) in a dropdown list of available tokens as collaterals.

  • Scroll down to the "Deposit collateral and Borrow USDP" section

  • Input numbers depend on your preferences and press "Execute"

  • Sign the transaction with Metamask etc.

  • Use USDP as you wish

  • Repay your debt via the section "Repay USDP & Withdraw collateral"

    • Amount to repay will be equal to borrowed USDP amount + stability fee for the period.

Detailed version:

Let's go through the interface and see how we can borrow USDP for our token.

First, we take a look at the "Choose collateral" section:

Choose Collateral section

It let us choose the interested token and see basic parameters for the collateral. Every term has its hint. If you press on the information icon, you will see a pop-up with helpful information explaining the term. But let's define them one more time here:

  • Initial collateral ratio(ICR), % - debt/collateral ratio represents the maximum amount of debt a user can borrow initially (when opening CDP) with a selected collateral token.

    • For example, 40% means that for every $1000 collateral value, a user can borrow a maximum of $400 USDP initially.

  • Liquidation ratio(LR), % - debt/collateral ratio represents the limit after which anyone can liquidate the CDP.

    • As an example: 50% means that if the debt/collateral ratio will be >50%, the position can be triggered for liquidation.

    • LR>ICR creates a safety reserve to avoid instant liquidation if a user borrows the maximum limit.

  • Stability fee, % - represents the cost of USDP debt per year. It capitalizes during every action, which reduces debt/collateral ratio like withdrawing collateral and borrowing more USDP.

  • Liquidation fee, % - a fee which represents a % from the loan. Will be deducted from collateral if liquidation will occur.

  • Available USDP to borrow with current collateral, USDP - the maximum amount of USDP which can be borrowed for selected collateral token.

    • In our case, it is 0 because all the available USDP limit was already taken for the DUCK token at that moment.

Your Balances section:

This section shows your wallet balances: DUCK, USDP, and selected token-collateral.

Deposit collateral & Borrow USDP section:

Input the amount of the token you would like to deposit as collateral and how much you would like to borrow.

Max button for token collateral will input your token wallet balance. Max button for USDP will count the amount of USDP based on the ICR ratio.

The "Execute" button will send the transaction to your wallet and ask you to sign for execution.

Deposit collateral & Borrow USDP

Repay USDP and withdraw collateral

If you already borrowed some funds and would like to partially or fully repay your debt or withdraw collateral, you will need the section.

Max button for USDP will set the amount to Borrowed USDP + Stability fee for debt period.

Max button for collateral will count the amount of collateral you can withdraw based on your CDP parameters and current input. For complete withdrawal, press max for USDP to set full repayment first.

Repay USDP & Withdraw collateral

Your CDP section

This section represents the situation with your selected collateral CDP. To switch between different CDPs, choose another token in the section "Choose collateral".

Your CDP section

Let's take a look at the terms here:

  • Borrowed USDP - the amount of initially borrowed USDP for this main collateral CDP.

  • Collateral amount - the deposited asset amount.

  • Liquidation price - below the collateral price the position(CDP) can be liquidated.

  • Utilization - % of borrowed USDP compare to maximum USDP, which is possible to borrow for the CDP.