How to generate dotBTC
- Create Vault : User creates a vault
- Deposit Collateral : deposit collateral tokens into the vault.
- Check Collateralization Ratios : Collateralization ratio ( the amount of collateral tokens ) is asset specific to generate dotBTC.
- Mint .BTC : The user can mint dotBTC based on the collateral deposited and collateralization ratios.
- Maintain Collateralization Ratio : The creator of the vault must maintain the collateralization requirements at all times. If the collateralization ratios are not met, the vault will be liquidated to buy back the dotBTC minted and remaining collateral after paying back minted dotBTC will be returned back to the vault.
- Get Rewarded : For maintaining the collateralization ratios , the creators of vault are rewarded with governance tokens , which is the backbone to governance decisions.