User Guide
Carbon users can lock in collateral on the Nitron platform to mint the USC stablecoin, which can be subsequently redeemed by burning the stablecoin.
The value of the collateral locked in the CDP needs to maintain a certain percentage of the stablecoin minted, usually around a 150% collateralized ratio (i.e. over-collateralized). For example, if you deposited $150 worth of ETH for collateral, you can mint 100 USC.
This over-collateralization is important to prevent the CDP from being under-backed during periods of volatility, which may cause the stablecoin to be depegged.
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