Borrowing Fee — The Borrowing Fee is a one-off fee charged as a percentage of the borrowed amount (in PUSD) and is part of a Trove’s debt. The fee varies between 0.5% and 5% depending on PUSD redemption volume.
TVL— The Total Value Locked (TVL) is the total value locked as collateral in the system, given in Matic and USD.
Troves — The total number of active Troves in the system.
PUSD supply — The total PUSD minted by the PolyQuity Protocol.
PUSD in Stability Pool — The total PUSD currently held in the Stability Pool, expressed as an amount and a fraction of the PUSD supply.
Staked PYQ— The total amount of PYQ that is staked for earning fee revenue.
Total Collateral Ratio — The ratio of the dollar value of the entire system collateral at the current Matic:USD price, to the entire system debt.
Recovery Mode — Recovery Mode is activated when the Total Collateral Ratio (TCR) falls below 150%. When active, your Trove can be liquidated if its collateral ratio is below the TCR. The maximum collateral you can lose from liquidation is capped at 110% of your Trove’s debt. Operations are also restricted which would negatively impact the TCR.
PUSD is the USD-pegged stablecoin used to pay out loans on the PolyQuity protocol. At any time it can be redeemed against the underlying collateral at face value.
PUSD will be minted when users deposit collateral (Matic) and open troves. The mechanism for its price stability is described in our doc.
PYQ is the secondary token issued by the PolyQuity. It captures the fee revenue that is generated by the system and incentivizes early adopters.
The Trove section is where you will maintain your loan. Here you will be able to add/remove Matic as collateral as well as manage your debt.
Note that each Polygon address is only able to have one Trove.
Deposit — The amount in Matic staked as security for repayment of your loan
Debt — The amount of PUSD borrowed.
Liquidation Reserve — An amount set aside to cover the liquidator’s gas costs if your Trove needs to be liquidated. The amount increases your debt and is refunded if you close your Trove by fully paying off its net debt.
Borrowing Fee — This amount is deducted from the borrowed amount as a one-time fee. There are no recurring fees for borrowing, which is thus interest-free.
Collateral ratio — The ratio between the dollar value of the collateral and the debt (in PUSD) you are depositing. While the Minimum Collateral Ratio is 110% during normal operation, it is recommended to keep the Collateral Ratio always above 150% to avoid liquidation under Recovery Mode. A Collateral Ratio above 200% or 250% is recommended for additional safety.
Opening a Trove
Open a Trove to mint PUSD debt against your Matic.
1) Enter the amount of Matic collateral you wish to use. (The Collateral Ratio needs to be above 110% or above 150% if in Recovery Mode)
2) Enter a Borrow value greater than 90.00 PUSD
3) Confirm the amount of Matic deposit and PUSD displayed at the bottom info section
4) Click “Confirm”
After you have successfully confirmed, the Trove view will add the ability to adjust or close the Trove.
The Stability Pool acts as a cushion to make the platform more stable. If you provide PUSD to this pool you will be able to earn some extra rewards.
Deposit your PUSD into the Stability Pool to earn rewards in PYQ token.
1) Click the “Stake PUSD” button
2) Enter the amount of PUSD you wish to enter
3) Click the “Confirm” button
Stake the PYQ you earn to receive protocol income and transfer fee in PUSD, Matic and PYQ.
1) Click the “Stake PYQ” button
2) Enter the amount of PYQ you’d like to stake.
3) Click the “Confirm” button
Claim your Staking reward by clicking the “Claim gains” button and approving the transaction.
You could earn PYQ via staking LP tokens.
Risky Toves are troves that have a low collateral ratio and may be liquidated if collaterals prices drop sharply.
A redemption is the process of exchanging PUSD for Matic at face value, as if 1 PUSD is exactly worth $1. That is, for x PUSD you get x Dollars worth of Matic in return.
Users can redeem their PUSD for Matic at any time without limitations. However, a redemption fee might be charged on the redeemed amount.
PUSD redemption is disabled for the first 14 days after launch.
After some time, you will gain Matic and PYQ. When you have a reward to claim, the button will be enabled. If you currently have a Trove open, you will also have the option to “Claim PYQ and move Matic to Trove.”