DarkNess Dollar

Minting and Redeeming

Detailing the process of minting and redeeming DUSD

Minting DUSD

All DUSD tokens are fungible with one another and entitled to the same proportion of collateral no matter what collateral ratio they were minted at.
Users can use a combination of stables (USDC + USDT + DAI) and Darkness collateral (DARK + NESS), according to Collateral Ratio, to mint DUSD. Collateral Ratio is ranging from 95% Max to 70% Min, depending on DUSD price.
For example, with Collateral Ratio of 70%, users will need 70 (USDC/USDT/DAI), $30 equivalent amount of both DARK and NESS (ratio between DARK and NESS depends on NESS supply) to mint 100 DUSD.
There is a minting fee (0.2% or 0.4%), charged in (DARK+NESS).
For example, when minting $100 worth of DUSD and fee is 0.2%, beside the (DARK+NESS) amount required by Collateral Ratio, users need to provide an extra $0.2 equivalent amount of (DARK+NESS) for the minting fee.

Redeeming DUSD

DUSD holders can redeem DUSD back to stables (USDC/USDT/DAI), DARK and NESS, depending on the balance of Darkness Central Reserve.
There is a redeeming fee (0.4% or 0.8%), also charged in (DARK+NESS).
For example, if Collateral Ratio is 70%, when users redeem 100 DUSD and fee is 0.4%, users will then receive 70 (USDC/USDT/DAI) and $29.6 equivalent amount of (DARK+NESS) (already subtracted $0.4 for fee).