Return aUSD₮
Last updated
Last updated
Managing CMP is an important task for Alloy by Tether users, returning aUSD₮ or adding more XAU₮ collateral helps reduce the Mint to Value and liquidation price, moving the Vault to a safer spot and making liquidation less likely.
Note: Each of the actions described below can be executed alone, or together with the others.
Firstly, users can use the left side of the screen to decide how many XAU₮ tokens to withdraw from the Vault and how many aUSD₮ to return to their Vault when performing the withdrawal.
Note: Withdrawing collateral without returning aUSD₮ increases the liquidation price and brings the CMP closer to liquidation.
The first box "Withdraw" shows how many XAU₮ tokens are being withdrawn.
The second box "You'll be Returning" shows how many aUSD₮ tokens are being returned to the Vault.
While interacting with the left side of the screen, users may notice that the right side is showing them what their position would look like, if they were to go through with the actions depicted on the left side of the screen.
Collateral: Amount of XAU₮ tokens deposited as collateral into the Vault.
Minted: Total amount of aUSD₮ minted by the user. In this case, the user is returning aUSD₮ and the number is therefore going down.
Liquidation Point: Defines the maximum percentage of aUSD₮ mintable given user's deposited collateral, also known as "Maximum MTV".
Mint to Value: Current Mint to Value of the CMP. Once this number exceeds the Liquidation Point, the collateral held in the Vault will be subject to liquidation. The lower this percentage is, the further away a CMP is from being subject to liquidation.
Health Bar: Visual representation of the Mint to Value in relation to the Liquidation Point.
XAU₮ Price: Current Price of one XAU₮ token, as determined by the Oracle.
Liquidation Price: XAU₮ price at which your Vault will be subject to liquidation.
The Breakdown section shows a detailed summary of the transaction being submitted by the user. It shows how the user wallet balance will change, how the CMP will be affected as well as the fees being charged.
The breakdown section can be easily hidden, by clicking on the arrow above it.
In this case, we can see how the current transaction will have the user wallet withdraws 6 XAU₮ tokens, returns from its wallet 4010 aUSD₮ and pays a 10.025 aUSD₮ return fee. The total transferred into the vault to reduce the position from 4010 aUSD₮ to 0 minted aUSD₮ is therefore 4020,025 aUSD₮. These 10.025 aUSD₮ (0.25% of the total returned by the user) are paid on top of the return amount, and are not reducing the user minted position.
On the bottom right corner of the screen, users can find the parameters for the Vault.
Return Fee: defines the fee that a user pays to return aUSD₮. Please see the Fee Schedule for more details.
Liquidation Premium: The additional value in XAU₮ received by liquidators for every aUSD₮ returned to the CMP, expressed as a percentage.
When you're prepared to return aUSD₮, simply click the "Return aUSD₮ and Remove Collateral" button.
Once done, clicking this button and confirming the proposed transaction will transfer the XAU₮ from the Vault to your wallet At the same time, the returned aUSD₮ will be moved from your wallet to the vault.
Once executed, and if you still have a position open, you will be able to monitor your CMP and current status on the right side of the screen.
