Information about minting aUSD.
The aUSD stablecoin is a decentralized, trustless, collateral-backed cryptocurrency whose value is strong-pegged to the US Dollar. By maintaining a strong-peg to the US Dollar, users are shielded from the price volatility that is common with many cryptocurrencies.
Karura Apps offers access to decentralized, non-custodial, and permissionless borrowing through Vaults on the Karura network. Users can mint (generate) the aUSD stablecoin by locking assets as collateral in a Vault. It's important that users be mindful of the risks associated with Vault usage before opening one.
Instead of selling their crypto assets, users can draw liquidity from those assets by locking them in a Vault as collateral. The aUSD that is minted (generated) from this can be used to purchase various goods and services.
Vaults offer flexible payment terms. There are no payment schedules, required minimum payments or credit history requirements. As long as users maintain the proper collateralization ratio in their Vault, they can pay back the Vault at any time.
Traders can draw liquidity from their crypto assets to buy more crypto assets. This is sometimes referred to as "leverage" and can be done by locking your assets in a Vault as collateral. Using leverage magnifies the risk of loss as well as the potential gains. Traders should proceed with caution when using leverage.