⛏️Minting
Currently, the BitU ecosystem implements a whitelist system for $BITU stablecoin minting. Users who wish to mint $BITU need to apply to the BitU team and undergo whitelist verification before they can mint $BITU.
How to apply for the whitelist?
You can submit your minting application by sending it to hello@bitu.io email. Once our team receives your application, we will follow up and process your request within less than 5 business days.
Why is a whitelist required? What factors are considered during whitelist verification?
Minting $BITU with collateral involves inherent risks, which we aim to keep within manageable limits. Recognizing that risk management awareness may be limited among many crypto users, we prioritize their protection by minimizing exposure to these risks. As such, we recommend most users acquire $BITU through safer means to participate in the project and earn rewards.
Whitelist verification assesses the risk management capabilities of users or institutions and the security of their fund sources. This process is crucial to prevent non-compliant behaviors or funds from entering the BitU ecosystem. Our approach is conservative, emphasizing safety and risk management in the BitU protocol.
Which assets are supported for BITU minting?
During the initial phase, $BTC is supported as the asset for minting $BITU. We may consider adding more assets for collaterals in the future.
What is the process of minting $BITU?
After undergoing whitelist verification, users can mint $BITU by calling the Mint function in the Minting contract through the Mint page on our website. During the minting process, users need to provide the following:
Select the collateral asset.
Enter the quantity of collateral.
Input the collateral rate or choose the default one.
Subsequently, based on the collateral asset's price provided by Oracle, users will receive the expected amount of $BITU they can obtain. If there are no objections, users will be prompt to approve the transaction and wait for it to be executed on the blockchain.
During execution, there might be a time difference between the user's previewed quantity and the actual execution, so the final quantity of $BITU obtained may differ from what the user initially saw.
If the difference in quantity falls within the user's acceptable slippage range, the transaction will succeed; otherwise, it will fail. The default slippage tolerance at this stage is 0.1%. Minting fee is 0.15%.
Upon receiving $BITU, the collateral asset will be directly sent to the custody address by the minting contract.
What is the collateral rate?
The collateral rate represents the ratio of the value of the user's collateral asset to the value of the minted $BITU. For example, if a user mints 100 $BITU using a $BTC collateral worth $250, the collateral rate would be calculated as follows:
$250 / $100 * 100% = 250%.
The default collateral ratio (CR) refers to the recommended collateralization rate suggested by $BITU during the minting process.
The minimum collateral ratio indicates the lowest collateral rate that users can set if they want to maximize capital efficiency and mint the most $BITU with the same value of collateral.
Currently, the minimum collateral rate for risk assets is 200%. If a user has $BTC worth $250, the maximum $BITU they can mint would be $250 / 200% = $125
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