Minting is the process of creating new IRON tokens. Depending on the Target Collateral Ratio (TCR), minting requires a varying amount of USDC or BUSD token and TITAN or STEEL token.
Values for the minting formula described below for the price of Collateral and STEEL are taken from our pricing oracle (see Pricing Oracle for more information).
With every $1 worth of deposit, exactly 1 IRON will be minted. The amount of TITAN or STEEL and USDC or BUSD collateral required depends on Target Collateral Ratio (TCR).
The formula determining the ratio of USDC or BUSD and TITAN or STEEL input:
Example 1: Minting IRON at a Target Collateral Ratio of 100% with 100 USDC or BUSD at price of 1 USDC or BUSD = $1
At a TCR of 100% zero TITAN or STEEL will be required to mint exactly 100 IRON.
Example 2: Minting IRON at a Target Collateral Ratio of 80% with 80 USDC or BUSD at price of 1 USDC or BUSD = $1.05
At a TCR of 80%, 80 USDC or BUSD at 1 USDC or BUSD = $1.05 and a current market price of TITAN or STEEL at $3.00, then the amount of TITAN or STEEL required in the minting process will be 7.
With 80 USDC or BUSD and 7 TITAN or STEEL the total amount of IRON minted will be 105.