1. What is kUSD?
kUSD is a decentralized stable coin that is scalable (1kUSD=1USD). It’s minted by collaterazing KALA、BEP20-BTCB、BEP20-ETH, and is kept stable through overcollateralization. It can be used for minting synthetic assets on the Kalata platform.
2. What can kUSD be used for?
- Minting synthetic assets on the Kalata platform like kCOIN, kTSLA, kSPCE, kAMZN and many others in the near future
- Earning a yield by adding to the KALA-KUSD liquidity pool
- Mining Kala by staking KALA-KUSD LP tokens
3. How to get kUSD?
kUSD is minted by collaterazing KALA. The minimum collateralization ratio is 150%. This means if you have KALA worth $1,000 at the current market price you can mint a maximum of $500 in kUSD.
4. What’s the specific process for minting kUSD?
Step 1: Click on the “Mint” tab
Step 2: Choose the amount of KALA and kUSD you want to collateralize
Step 3: Set your collateral ratio
Step 4: Click on “mint” to complete process
5. What is the specific liquidation mechanism in the minting?
Firstly, MCR means the minimum collateral ratio.
When this drops below 150% the liquidation mechanism is triggered.
- Example: User A mints kUSD with KALA at a collateral rate of not less than 150%. When the price of KALA falls, causing the MCR to go below 150%, the system allows other users to liquidate user A’s assets at a certain discount. The discount will depend on how far the MCR is below 150%.
- Method: User B will exchange a certain amount of kUSD for the KALA pledged by User A at an agreed discount, so that User A’s collateral ratio will be restored to 150% or more.
- Result: The kUSD used by User B for liquidation will be burned and a 1.5% commission will be charged.
6. What happens when a user removes the KALA collateral used to mint kUSD?
First the user must return the minted kUSD. Upon removing the KALA collateral the kUSD is burnt.
7. What does it cost to mint kUSD?
The only fee applicable is the standard network fee for executing a smart contract on BSC. 1.5% commission will be charged when close position and withdraw.
