$1/DAI) at a collateral ratio of 1.00
200 XUSDare minted in this scenario. Notice how the entire value of XUSD is in dollar value of the collateral when the ratio is at
100%. Any amount of XUS attempting to be burned to mint XUSD is returned to the user because the second part of the equation cancels to
0regardless of the value of
150 XUSDare minted in this scenario.
120 XUSDare backed by the value of DAI as collateral while the remaining
30 XUSDare not backed by anything. Instead, XUS is burned and removed from circulation proportional to the value of minted algorithmic XUSD.
437.78 XUSDare minted in this scenario. Proportionally, half of the newly minted XUSD are backed by the value of USDC as collateral while the remaining 50% of XUSD are not backed by anything.
62.54 XUSis burned and removed from circulation, half the value of the newly minted XUSD. Notice that the price of the collateral affects how many XUSD can be minted – XUSD is pegged to 1 USD, not 1 unit of DAI.
$170of value to the redeemer in
110.5 DAIfrom the collateral pool and
15.867 of newly minted XUStokens at the current XUS market price.