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  1. DELEA PROTOCOL - CDP
  2. Mechanisms

Borrowing (Mint)

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Last updated 1 month ago

To borrow funds, the user must first deposit TON, stTON, tsTON, jBTC and jETH as collateral.

Once the deposit is made, the user can borrow any amount of $DONE at their discretion, with a minimum collateralization of 125% (or more).

The borrowed $DONE is sent directly to the user’s wallet connected to the protocol.

Our collateral is distributed across smart contracts, decentralized exchanges (DEXs), and centralized exchanges (CEXs).

In the future, we will introduce staking for our stablecoin. Users will be able to stake the stablecoin for periods starting from 30 days. As a result, collateral will be released from contracts on CEXs and will participate in farming strategies. A user can borrow up to 79% of their collateral's value, corresponding to a Health Factor (HF) of 1.26 (calculated as 100% / 79%). Here is the scheme how Delea works:

Example:

Imagine a user has 1,000 TON and wants to deposit it as collateral to borrow $DONE tokens.

  1. The user opens a position on the platform and deposits 1,000 TON.

    • The position's value is calculated dynamically based on the current market price of TON.

For instance:

  • If the price of 1 TON = 5 USD, the collateral is worth 5,000 USD.

  • If the price drops to 4 USD, the collateral’s value decreases to 4,000 USD.

  1. The user mints a certain amount of $DONE, ranging from 1% to 79% of the collateral's current value.

In this case:

  • The maximum borrowable amount would be 0.79 × 5,000 = 3,950 $DONE.

  • Suppose the user decides to mint 3,000 $DONE.

Position summary:

  • Collateral: 1,000 TON

  • Debt: 3,000 $DONE

  • Health Factor: (Collateral value in USD) / Debt = (1,000 × 5) / 3,000 = 1.66

Details:

  • cTON: 1,000 (collateral in TON)

  • dDONE: 3,000 (debt in $DONE)

  • TONUSDRate: 5 (price of TON in USD)

  • Health Factor formula: = (cTON * TONUSDRate) / dSTBL = 1000*5/3000 = 1.66

Improving the Health Factor

To increase your Health Factor, you have two options:

  1. Repay part of your $DONE debt to reduce your liabilities.

  2. Add more TON/stTON/tsTON/jBTC/jETH to your position to increase your collateral value.

Both options positively impact your Health Factor, helping to maintain a safer position in the protocol.

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