Minting and Redeeming USBD

What is Minting ?

The procedure called "minting" is used in the Bima protocol to create and distribute new USBD stablecoins. Collateral (like LSTs or other approved assets) must be locked in order to produce USBD tokens, which are subsequently usable throughout the DeFi ecosystem.By ensuring that every USBD is supported by enough collateral, this procedure preserves the stability and value of each USBD.

Requirements of Minting USBD

To mint USBD, users need to:

• Have a Supported Wallet: Users must connect a compatible wallet to the Bima protocol.

• Provide Collateral: Users must deposit an accepted collateral asset, such as any LST that got from staking BTC on other protocol , into the Bima protocol.

• Maintain Collateralization Ratio: Users must ensure that the value of their collateral meets or exceeds the minimum collateralization ratio required by the protocol.

Overview of the Minting Process

1. Connect Wallet: Users need to connect the Bima protocol to their wallet. Supported wallets include Ledger, MetaMask, and other well-known wallets.

2. Select Vault for LST Staking or Bitcoin Staking: You will be able to see several vaults for each supported LST after linking your wallet. Choose the vault where you want to deposit your LST.

3. Stake Asset: Enter your preferred deposit amount for your LST or BTC. as well as the collateral ratio. The collateral value needs to match the necessary collateral ratio.

4. Transaction Confirmation: The transaction details, such as the quantity of USBD to be minted and the collateral to be locked, are reviewed by the users. The transaction is handled on the blockchain when it has been verified.

5. Claim USBD: The user's wallet is credited with the newly created USBD tokens. Users are able to check their updated balance and validate the transaction.