End Users
As a user of the TUSDT Portal, we assume you are someone who wants TUSDT our stablecoin pegged to USD value. You interact with a straightforward vault based interface that enables you to manage your collateralized positions and participate in the broader TUSDT ecosystem.
Core Actions:
Creating a Vault (Opening Your Position)
Select "Create Vault" from the Portal interface to open your personal vault
Deposit your TAO tokens as collateral into the vault.
Your vault tracks your collateral, debt, and collateralization ratio in one place.
Each vault is individualized, you manage your own debt-to-collateral position.
Minting TUSDT (Getting Stablecoins)
Click the "Mint" button from your Vault Overview
Mint TUSDT stablecoins against the TAO collateral you've deposited
Your TAO remains locked in the vault as backing
You must maintain at least a 150% collateralization ratio, meaning for every $1 of TUSDT you mint, you need at least $1.50 worth of TAO locked
A 10% annual interest rate (compounded hourly) applies to your minted TUSDT debt.
Burning TUSDT (Repaying Your Debt)
Click the "Burn" button from your Vault Overview
Return your TUSDT stablecoins to reduce your vault's outstanding debt
Burning TUSDT frees up your locked TAO collateral for withdrawal
You can repay partially or in full at any time
Adding Collateral (Strengthening Your Position)
Click the "Add Collateral" button from your Vault Overview
Deposit additional TAO into your vault
This increases your collateralization ratio, reducing your liquidation risk
Useful when TAO price drops and your ratio approaches unsafe levels
Releasing Collateral (Releasing Your TAO)
Click the "Releasing" button from your Vault Overview
Release TAO collateral from your vault back to your wallet
You can only withdraw if the remaining collateral keeps your vault above the 150% collateralization ratio.
Once all debt is repaid, you can withdraw your full collateral and exit your position
Participating in Auctions (Bidding on Liquidated Collateral)
When another user's vault falls below the 120% liquidation ratio, their collateral is placed into a liquidation auction
You can browse active auctions and place bids starting from the minimum bid amount
Bids are placed using TUSDT
The highest bidder at the end of the auction wins the corresponding TAO collateral
If you are outbid, you can withdraw your refund after the auction finalizes
Participating in auctions helps maintain the stability and solvency of the entire TUSDT system
What This Means for You
Simple Interface: The Portal guides you through vault creation, minting, burning, collateral management, and auction participation all from a single dashboard
Protected Value: Your deposits are secured by smart contracts deployed on Ink, Bittensor's native EVM layer, ensuring deep integration with TAO's native liquidity and security
Stay Above the Ratio: Keep your collateralization ratio well above 150% to avoid liquidation. If TAO's price drops and your ratio falls below 120%, your vault may be auctioned off
Emergency Protection: Automatic circuit breakers activate during extreme market volatility, including a full system shutdown if TAO price drops by 18% to protect the overall system
Upgradeable Security: The protocol uses pausable and upgradeable smart contract patterns, meaning the system can be enhanced and secured without disrupting your holdings
The Portal – Your Gateway
The TUSDT Portal acts as your gateway to convert between TAO and TUSDT seamlessly. Whether you're minting stablecoins for liquidity, repaying debt to free your collateral, or bidding in auctions for discounted TAO, the Portal provides a unified, secure interface with built-in protections ensuring your assets remain safe throughout the process.
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