Creating new tokens

The whole process of minting new tokens into circulation works in the same way for both algorithmic AGOBTC and AGOUSD tokens. It is based on the current Target Collateral Ratio. Argano protocol uses a formula, which shows the required amount of both collateral and share tokens needed for the minting in different examples.

The main difference will be applied only for the mechanism of the price stability, as our main goal to reach $1 peg in the case of AGOUSD and to repeat all the price movements of Bitcoin for our native AGOBTC.

Let's take a look at the following basic formula:

Where Share used as CNUSD / CNBTC tokens respectively, according to the selected algorithmic token.

Now, let's take a look at the following situations, using different input data.

In the case of AGOUSD minting, the amount of CNUSD and collateral (USDT) is required to reach a $1 price. The required amount of both share and collateral tokens will be calculated according to the present TCR level.

Set - up №1:

  • TCR is equal to 100%

  • USDT price - $1.00

In the beginning, when the level of the collateralization will be absolute, for minting 1 AGOUSD token, there is no need to use the CNUSD share token:

1 _{USDT} × $1.00 = $1.00 ⇔1_{AGOUSD}

Set - up №2:

  • TCR is equal to 70%

  • WBTC price - $62,000.00

  • CNBTC - $24,000.00

  • The user wants to mint 1 AGOBTC using his 0.7 WBTC

Let's find the amount of CNBTC, needed to perform the minting, using 0.7 WBTC:

Using 0.7 WBTC and 0.775 CNBTC the total amount of AGOBTC will be minted.

(0.7WBTC×62000)+(0.775×24000)=43400+18600=$62000 ⇔ 1_{AGOBTC}

The same calculation applies to the AGOUSD minting.

The minting fee is configured to 0.3% per transaction.

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