🖨️Collateralized Minting
Minting Frankencoins against collateral, with version-specific borrowing terms.
A position holds a user's collateral and records the Frankencoins they have minted against it. It has one owner, initially its creator; ownership can be transferred. The owner can add collateral and mint within the position's price, collateral, time and capacity constraints.
Anyone can challenge a position when they believe the market value of the collateral is below the stored liquidation price, not the other way around. A challenge starts a two-phase auction. Challengers must supply collateral of their own, which can be bought during the first phase. A challenge is not a risk-free price report. This mechanism replaces an external price oracle; it depends on participants being able and willing to challenge.
There are two entry paths:
Open a new position: an advanced-user proposal with configurable parameters and a veto period. The application provides a creation route.
Clone an existing position: use an accepted position's terms, subject to available capacity and its expiry. This is usually the simpler path.
FCS holders oversee new proposals through veto-based governance. Borrowing fees and liquidation results feed into the reserve, connecting minting to the equity in which FCS holders participate. Borrowers do not need FCS to open or clone a position.
Contract versions
The implementation matters. This guide distinguishes the newer contracts/minting/ source from historical screenshots and legacy terms. The source references are pinned to commit 8b4c4ab67bb361b91d58c474b87f4608fc4c0566:
The chain, position address and originating hub identify a deployed position; its verified code and transaction quote determine its terms. The pinned source describes a version, not every existing position. Existing positions do not automatically gain a newer implementation's terms.
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