A user funds a Vault with a certain type and amount of collateral that will be used to generate AUSD via the ADADAO web app. A Vault is deemed collateralized once it has been funded.
Generate AUSD from the Collateralized Vault
In order to create a certain amount of AUSD in exchange for keeping her collateral locked in the Vault, the Vault owner conducts a transaction and subsequently confirms it in her unhosted cryptocurrency wallet
Pay down the Debt and the Stability Fee
A Vault owner must pay down or totally pay back the AUSD he/she generated, plus the Stability Fee on the AUSD outstanding, in order to reclaim a portion or all of the collateral. Only AUSD can be used to pay the Stability Fee.
The Vault owner can withdraw all or part of her collateral back to her wallet once the AUSD has been returned and the Stability Fee has been paid. The Vault remains vacant until the owner chooses to make another deposit after all AUSD has been returned and all collateral has been collected.
NB: Each collateral asset must have its own Vault. As a result, some customers will have many Vaults with various forms of collateral and collateralization levels.