Minting new ISSUAA Assets

The process of minting new derivative ISSUAA Assets is efficiently managed by the assetFactory smart contract. Here's a breakdown of how it works:

1. Calling the "mintassets" Function: To initiate the creation of new ISSUAA Assets, users must call the "mintassets" function. This action requires two essential parameters:

● The quantity of USD stable coins that will be converted into these new assets.

● The symbol of the asset intended for minting.

2. Calculating New Asset Tokens: The number of new asset tokens a user receives is determined by dividing the amount of USD stable coins by the predefined upper limit, which is unique for each asset.

3. Long and Short Tokens: It's important to note that users always receive an equal amount of long and short tokens in the minting process. The value of these tokens is structured as follows:

● Long tokens are valued at the price of the underlying asset.

● Short tokens are valued at the upper limit defined for the asset, minus the value of the underlying asset.

● As long as the market price of the underlying asset is below the upper limit, adding up the price of 1 Long and 1 Short token should equal the upper limit. Deviations can be farmed by arbitrage players.

4. Capital Efficiency: A notable feature of the ISSUAA protocol is that it does not require over-collateralization. This attribute enhances capital efficiency within the protocol, making it a resource-friendly environment.

5. Asset Freezing Scenario: The only situation in which the intrinsic value of 1 Long token plus 1 Short token would not equal the upper limit is if the asset's price surpasses the upper limit. In this scenario, the asset is frozen. This signifies that minting new tokens for that asset is no longer possible, and long tokens can be redeemed at the upper limit price. Short tokens become worthless in this circumstance.