Depositing Collateral and Minting ONEZ

This page explains how you can deposit collateral and mint ONEZ

Users have the option to deposit accepted assets into the platform, like Ethereum (ETH) and stablecoins like USD Coin (USDC). These deposits serve as collateral for minting ONEZ.

The process of minting ONEZ requires users to deposit their assets at a specific collateral ratio. This ratio determines the amount of ONEZ that can be minted based on the value of the deposited assets.

It is advisable to maintain a collateral ratio of above 150%.

After depositing their assets, users can mint ONEZ. The minted ONEZ can be used for other DeFi interactions, adhering to the utility of the stablecoin.

ONEZ <> ZeroLend

The deposited assets are not idle; they are actively lent out through the platform's native lending protocol, Zerolend.

This step is vital for generating returns on the deposited collateral. By lending out the deposited assets, Zerolend generates interest. The interest earned from lending out assets via Zerolend is used to pay off the loans associated with minting ONEZ. This model helps maintain a balance between the interest earned and the loan repayments - making ONEZ a self-repaying loan platform.