Manage your debt and Collateralization ratio
The Debt Management page allows users to manage their collateralization ratio and debt in order to avoid liquidation risks and maximizing their capital efficiency.
Users can manage their debt in four different ways:
Manage your Collateral
- 1.Increase your Collateralization Ratio Users can increase their collateralization ratio by staking more collateral without minting new moUSD. This will allow users to keep their already minted moUSD while reducing the liquidation risk on their collateralized assets.
- 2.Reduce your Collateralization Ratio Users can reduce their collateralization ratio by unstaking part of their collateral without affecting their moUSD balance. This will allow users to maximize their collateral capital efficiency as well as their exposure to their selected asset.
Manage your Debt
- 1.Increase your Debt Users can increase their debt by minting more moUSD with the outstanding collateral. This implies increasing their collateralization ratio, which allows users to maximize their collateral capital efficiency as well as their exposure to a specific asset.
- 2.Reduce your Debt Users can decrease their debt by burning moUSD. This implies decreasing their collateralization ratio, which allows users to maximize their collateral capital efficiency during volatile periods in the market.