Opening a CDP
Lock collateral and mint synthetic assets from the market page.
Opening a CDP
A CDP (vault) lets you lock USDC collateral and mint a synthetic asset (like sBTC) against it. Your debt is always over-collateralised; if your ratio falls below the liquidation threshold, keepers can liquidate the vault.
Prerequisites
- KYC: passed once; the app prompts you if not.
- USDC balance: collateral is transferred into the vault contract.
- The synthetic market must be active (not disabled by the DAO).
Open a CDP
- Open the market page for the synthetic you want, e.g. Markets → sBTC.
- In the CDP panel choose Open CDP: enter the USDC amount to lock and the synthetic amount to mint.
- Review the resulting collateral ratio shown in the panel. It must be at or above the market's minimum (default 150%).
- Sign and submit. One vault is created per synthetic per wallet.
Opening a vault transfers your USDC in and mints the synthetic to your wallet. A one-shot stability fee (per-market bps, not an annual rate) is burned from the minted amount.
Manage a vault
Reopen the same market page. The CDP panel shows your vault and its live ratio:
- Deposit collateral: lock more USDC to raise your ratio.
- Withdraw collateral: free USDC (only while the ratio stays above the minimum).
- Mint more: borrow more synthetic up to the debt ceiling, within the minimum ratio.
- Repay: burn synthetic to reduce your debt and unlock collateral.
Liquidation
If the collateral ratio falls below the market's liquidation ratio, anyone may liquidate the vault: a liquidator repays your debt in synthetic and takes collateral worth the repayment plus a penalty (default 10%).
Stay safe: keep a buffer above the minimum ratio, and watch the panel after big price moves.
Under the hood
| Step | On-chain |
|---|---|
| Open | SyntheticEngine.open_vault(owner, synth, coll_token, coll_amount) |
| Mint | mint_synth(owner, synth, amount): checks ratio + debt ceiling, then burns the stability fee |
| Repay | burn_synth(owner, synth, amount) |
| Withdraw | withdraw_collateral(owner, synth, amount) |
| Health | get_cr_bps(owner, synth), is_liquidatable(owner, synth) |
| Liquidate | liquidate(liquidator, owner, synth, repay_amt) |
Prices come from the TWAP oracle. Market parameters (minimum ratio, liquidation ratio, penalty, fee, debt ceiling) are set per synthetic by DAO proposals. See DAO governance. Contract addresses are on the Contract addresses page.