🔨MintingPage
Initiating a Collateralized Debt Position (CDP)
This section outlines how to mint and manage a Collateralized Debt Position (CDP) within the Gas Bet Protocol, specifically focusing on using Wrapped Staked Ether (wstETH) as collateral to create BaseFee tokens.
How to Mint BaseFee Tokens
Connect Your Wallet: Access our user interface by logging into your Ethereum wallet. Ensure that your wallet holds the wstETH you intend to use as collateral.
Initiate a CDP: On our platform’s dashboard, select the option to create a new CDP. You will be prompted to specify the amount of wstETH you wish to lock as collateral.
Minting Your BaseFee Tokens:
Enter the Desired Amount: Indicate how many BaseFee tokens you wish to mint. The interface will calculate the required amount of wstETH needed based on the protocol’s current collateralization ratio, which must be greater than 150%.
Confirm and Mint: Review the transaction details, including any associated fees. Once confirmed, execute the transaction to mint your BaseFee tokens.
Managing Your Position
After minting, your BaseFee tokens will be in your wallet. It’s important to manage your CDP actively:
Monitoring: Keep an eye on your collateralization ratio. If the value of your wstETH drops and approaches the value of the BaseFee tokens you've minted, you may need to add more collateral or reduce your debt to avoid liquidation.
Liquidation Process: If your collateral falls below a 150% Over-Collateralization Ratio (OCR), your CDP may be liquidated. This means some or all of your wstETH could be automatically sold to cover your debt.
Closing Your Position
When you are ready to close your position:
Repay the Debt: On our platform, choose the option to close your CDP. You will need to return the equivalent amount of BaseFee tokens you initially minted, along with any accrued fees.
Retrieve Your Collateral: After repaying the debt, you can withdraw your wstETH from the CDP. Your position will be closed, and your collateral will be returned to your wallet.
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