💘Collateral Ratio

Particles Protocol is using a Collateral Ratio (CR) for Minting and Redeeming process. There will be a minimum Collateral Ratio which is set by governance

The CR is used by the minting and redeeming function and it is displayed as a percentage. This ratio expresses what percentage of Particle token is required to mint or redeem a xETH token.

CR will be adjusted every hour at the step of 0.2% (up or down)

For example: ▶️ 60min-TWAP over 1.005 ETH -> CR down ▶️ 60min-TWAP under 0.995 ETH -> CR up At the beginning, the maximum CR is set at 90% and minimum CR is set at 60%