Swaps
Native exchange of Kresko Assets
Last updated
Native exchange of Kresko Assets
Last updated
This documentation is a work in progress!
Collateral value available in the SCDP is utilized by accounts swapping their Kresko Assets for an equivalent value of another Kresko Asset, minus a fee.
The account receives the desired Kresko Assets either as newly minted ones – incurring debt to the SCDP – or from available protocol owned collateral resulting from prior exchanges.
The assets provided by the trader in a swap contribute to repaying any outstanding debt tied to the specific asset.
In the scenario where the asset has no existing debt, the provided assets become temporary deposits within the SCDP, marked as protocol owned collateral.
This temporary deposit serves as valid collateral subject to liquidation and a reservoir for subsequent swaps, offering an alternative to minting new assets and enhancing the efficiency of the protocol's capital utilization.
Swap fees are configured per asset and direction, thus the final fee percentage depends on the asset pair and direction taken.
Fees are not used as collateral and can be claimed at any time. They cannot be seized in a liquidation.
