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feat(docs): add diagram for FAssets collateral ratio #554

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Feb 7, 2025
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13 changes: 12 additions & 1 deletion docs/fassets/2-collateral.mdx
Original file line number Diff line number Diff line change
Expand Up @@ -4,6 +4,9 @@ description: Understand how collateral works in FAssets.
keywords: [fassets, xrp, bitcoin, dogecoin, flare-network]
---

import ThemedImage from "@theme/ThemedImage";
import useBaseUrl from "@docusaurus/useBaseUrl";

FAssets collateral is locked in contracts that ensure the minted FAssets can always be redeemed for the underlying assets they represent or compensated by collateral.
Along with Flare's native token, FLR, any governance approved ERC-20 token on the Flare blockchain can be used as collateral.

Expand Down Expand Up @@ -116,7 +119,7 @@ Some are set by the system, and others are set by the agent:

### System-Wide Thresholds

The following thresholds are set by the FAssets system's governance and are the same for all agents:
The following thresholds are set by the FAssets system's governance and are the same for all agents.

#### Minimal CR

Expand Down Expand Up @@ -158,6 +161,14 @@ Each of the collateral types, the agent's vault and the collateral pool, has its

The following thresholds are set by each agent according to their own preferences.

<ThemedImage
alt="FAssets Collateral Ratio"
sources={{
light: useBaseUrl("img/fassets/flare_fassets_collateral_ratio_light.svg"),
dark: useBaseUrl("img/fassets/flare_fassets_collateral_ratio_dark.svg"),
}}
/>

#### Minting CR

For each mint done by an agent, the maximum amount allowed to be minted is calculated so that the CR for the agent's vault and the CR for the agent's collateral pool after the mint remain higher than the minting CR for each collateral type.
Expand Down
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