📄️ Collateral Vaults
A collateral vault is a smart coin in which XCH can be deposited and from which BYC can be borrowed. XCH deposited in a vault is used as collateral to back any BYC borrowed.
📄️ Liquidation
In a liquidation, the system recovers debt from a vault by auctioning off its collateral. A vault becomes eligible for liquidation if the value of the collateral locked-up in the vault drops below the Liquidation Threshold (LT).
📄️ Savings Vaults
By depositing BYC into a savings vault, BYC holders can earn interest on their stablecoins. Interest accrues on the balance in the savings vault by the minute according to the prevailing Savings Rate (SR). The SR is shown as an annual percentage rate (APR), for example 4%.
📄️ Treasury
The Treasury is a component of the protocol that stores BYC. It effectively functions as a buffer which takes in and distributes BYC in response to user interactions with the protocol.
📄️ Surplus Auction
In a Surplus Auction, the protocol auctions off a fixed amount of BYC as specified by the Surplus Auction Lot Amount parameter for CRT in an English auction.
📄️ Recharge Auction
A Recharge Auction can be launched whenever the BYC balance of the Treasury drops below the Treasury Minimum.
📄️ Price Oracle
The protocol needs to know the market price of XCH in US Dollars to value the XCH deposited in collateral vaults. It does this by reading from an Oracle, a special singleton coin that keeps track of the XCH/USD price. This Oracle Price is regularly updated using price data supplied by data providers.
📄️ Governance
Circuit protocol is goverend by CRT token holders. Token holders can use their CRT tokens to vote on changes to Statutes, which are global state parameters that define the protocol's behaviour. Statutes are stored in the Statutes singleton. Other than the Statutes, Circuit protocol is fully immutable.
📄️ CRT Token
Circuit Token (CRT) is the governance token of CircuitDAO.