Minting

Minting NUSD

The NUSD minting process implements strict controls to ensure full collateralization of all issued tokens while maintaining protocol security and efficiency.

MintingFlow

NUSD minting process flow

Process flow

Initiation

Users interact with the Router.sol contract by calling the mint() function with the following parameters:

Collateral asset address
Deposit amount
Beneficiary address for NUSD receipt

Collateral Transfer

The Router executes a transfer of collateral tokens from the user to the AssetReserve.sol contract, ensuring all backing assets remain under protocol custody before any NUSD issuance.

Routing to Minter

Based on the collateral type, the Router delegates the minting request to the appropriate Minter contract.

Valuation & Calculation

The Minter contract performs critical valuation steps:

Queries onchain price oracles
Determines current USD value of deposited collateral
Calculates NUSD output amount considering:
- Slippage tolerance: order.nusdAmount serves as minimum acceptable output
- Rate limits: Enforces maxMintPerBlock to prevent manipulation

NUSD Creation

Upon validation of all parameters, the Minter executes:

Calls mint() function on NUSD.sol contract
Increases total NUSD supply atomically
Credits newly minted tokens to the specified beneficiary