Minting

Minting

Collateral rate

Collateral rate is the ratio between the dollar value of your collateral in the LSDD Protocol and your loans in $LSDD.

Collateral rate = (deposited LSD/ETH * LSD/ETH's price) / (minted $LSDD * $LSD's price)

• Safe collateral rate = 160%

  • The collateral rate should be above the safe collateral rate while minting.

• Minimum collateral rate (MCR) = 150%

  • It is the lowest ratio of loan to collateral that will not trigger a liquidation under normal operations

• Recommended collateral rate = 200%

  • To keep your funds safe and avoid getting liquidated, a collateral rate higher than 200% is recommended.

Repayment

Repayment is the process corresponding to minting. As long as minters maintain a collateral ratio above MCR, they can repay the $LSDD debt at any time, and then withdraw the ETH collateral.

In addition, there is no fee for repayment and no specified repayment period for debt.