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Stock Tokens (pToken)
pTokens
pTokens are ERC-20 compatible tokens. As such can be traded or swapped on any decentralized or centralized exchange.
pTokens possess the following properties:
Name & Symbol
Describes the underlying real-world stock the pToken is supposed to track.
Minimum Collateral Ratio
A Safe that mints the pToken cannot have a collateral ratio below this value, otherwise it will be subject to liquidation.
Price
pTokens are designed to be as decentralized as possible. Peaches protocol gets underline stock prices from Chainlink decentralized price oracles https://chain.link/. Oracle Prices are used exclusively for determening collateral ratio of the Safe and do not affect pToken trading prices on decentralized exchanges.
Liquidation Discount Rate
For a Safe subject to liquidation, describes the discount for which its collateral can be purchased.
Safe
New tokens for a listed pToken can be minted by opening a Safe with either DAI, USDt, USDc Stablecoins OR corresponding LP tokens as collateral. The Safe is essentially a short position against the price movement of the reflected stock, if the stock price of the stock rises, minters of pToken would be pressured to deposit more collateral to maintain the collateral ratio.
Collateral Ratio
The collateral ratio (Cratio) is simply the ratio of the value of a Safe's locked collateral to the value of its current minted tokens.
cRatio = collateral / pToken amount * pToken priceA Safe should always maintain Cratio above 150%, otherwise the collateral will be subject to liquidation.
Safe Operations
Only one operation per block is allowed.
Opening a Safe
Users are allowed to set the initial Cratio for their Safes as long as it meets or exceeds the mandated minimum collateral ratio (minCratio). Peaches protocol calculates maximum amount (maxAmount) of pTokens that can be minted and issues pTokens up to maxAmount.
maxAmount = collateral / minCration * 100 / pToken priceDeposit
With an existing Safe, the user can deposit additional collateral to raise its effective Cratio.
Withdraw
The user can withdraw collateral against the Safe to adjust the value of their Safe's effective Cratio. The user can only withdraw up to maxAmount that is needed to maintain the Safe's effective Cratio above the minCratio.
maxAmount = (collateral / minCratio * 100) - (pToken amount * pToken price) * minCratio / 100Mint
The user can also mint pToken against the Safe to adjust the value of their Safe's effective Cratio. The user can only mint up to maxAmount that is needed to maintain the Safe's effective Cratio above the minCratio.
maxAmount = (collateral / minCratio * 100) - (pToken amount * pToken price) / pToken priceBurn
In addition to mint operation, with an existing Safe, the user can burn pTokens to raise its effective Cratio.
Close
If a user wishes to collect all their collateral from the Safe, they must close their position by returning the outstanding balance of minted pTokens, which the protocol will burn. The user will be then be able to withdraw their locked collateral.
Liquidate
A Safe can be liquidated when it falls below the minimum collateral ratio. At this time, if the owner does not quickly act and deposit more collateral or burn pTokens to deleverage their position, other users may purchase their safe's collateral at a discount, by burning outstanding balance of minted pTokens.
Protocol Fee
The Peaches protocol fee is charged whenever a withdrawal from a Safe is made (including closing the safe). Also the fee is charged during liquidation. This fee is then converted into PCHS half burned and the rest is distributed as LP rewards through Master Garden.
pTokens
pTokens are ERC-20 compatible tokens. As such can be traded or swaped on any decentralized or centralized exchange.
Last modified 5mo ago