Twin Finance
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Minting & Buyouts

Minting

To mint new tAssets we deposit BUSD collateral on the minter contract and we receive the newly minted tAssets we chose, the amount of tAssets we receive depend on the collateral ratio we choose and the amount of collateral deposited. We can do this easily from the UI. When we mint tAssets we also receive a CDP token that represents the collateral we deposited, you should keep this token safe, as it represent your ownership of the collateral deposited

Closing a position

If we have a CDP position and we want to get our collateral back we can close this position by burning the same amount of tAssets that were initially minted. We can do this easily from the UI

Buyouts

When a CDP position goes bellow its minimum collateral ratio, anyone willing may burn the amount of tAssets minted by the CDP position to get the collateral it holds. This prevent tAsset prices to go down bellow the oracle price and keeps all CPD positions correctly collateralised This can be done from the UI Users that decide to buy out make profit in the difference between the collateral ratio received with could mean a profit of 30% to 40% depending on the collateral ratio at the time of the buyout. This action is subjected to a 5% fee. Some of this profits are distributed to TWIN holders. Distributed as follows: -4% to burn -1% for the team

Partial buyouts

To help users with low funds participate in the buyouts, you can also make partials buyouts, in which you but a partial stake of the tAssets and receive the corresponding amount of collateral back. You still pay a 5% fee for buyouts.
Any CDP owner may add more collateral at any point to prevent a buyout. They may also close their positions without having to pay a buyout fee.
Last modified 7mo ago