Alnair Finance

Collateral Ratio

Alnair Finance uses a Collateral Ratio (CR) for minting and redeeming Alnair synths. There will be a minimum CR set by governance for respective synths. The CR is used by the minting and redeeming functions. It is displayed as a percentage. The ratio shows what percentage of ALNR is needed in order to mint or redeem a ASTR token.
For ASTX the CR will initially be set to 90% (the synth will be 90% collateralized by the underlying asset). It will then adjust by ±0.2% each hour.
e.g. ▶️ If 60 min TWAP is over 1.005 ASTR -> CR down ▶️ If 60 min TWAP is under 0.995 ASTR -> CR up