Mint nUSD

Minting nUSD is the process of creating a secured debt position by depositing approved collateral into the Unstable Protocol.

How to Mint nUSD

To mint nUSD, you need to deposit approved yield-bearing collateral into one of Unstable's vaults:

1. Connect your wallet to the Unstable Protocol dApp

2. Navigate to the "Mint" section

3. Select the type of collateral you want to deposit:

   • ETH-based assets (scETH, etc.)

   • S-based assets (stS, etc.)

   • USD-pegged assets (scUSD, wstkscUSD, etc.)

   • Other supported tokens with price feeds

4. Enter the amount of collateral you want to deposit

5. The system will calculate how much nUSD you can mint based on the current collateralization ratio for that asset type

6. Confirm the transaction

Collateralization Ratio

Each collateral type has a required minimum collateralization ratio (e.g., 125%), which means you must always maintain that buffer. For example, if your collateral is worth $1,250, you could borrow up to $1,000 nUSD at a 125% ratio.

Interest and Fees

Unstable charges interest on nUSD loans based on the specific vault and collateral type. The interest rate is determined by the protocol parameters and may vary over time.

Your collateral's yield continues to accumulate, which can help offset the interest costs and improve your loan health over time.