Minting new ISSUAA Assets

The minting process of new derivative ISSUAA Assets is managed by the assetFactory smart contract.
To mint new assets, the "mintassets" function needs to be called, which requires two parameters:
  1. 1.
    The amount of USD stable coins that will be coverted into new assets
  2. 2.
    The symbol of the asset that is supposed to be minted.
The amount of new asset tokens to be received is calculated by dividing the amount of USD stable coins by the upper limit, which is defined for each asset.
The user will always receive an identical amount of long and short tokens. The value of these tokens is defined as following:
Long tokens: the value of the underlying asset.
Short tokens: the defined upper limit minus the value of the underlying asset.
The value of 1 long token plus 1 short token thus equals the defined upper limit parameter. Therefore, no over-collateralisation is needed for the ISSUAA protocol, which makes it highly capital efficient.
The only condition, under which the intrinsic value of 1 long token plus 1 short token would not equal the upper limit is the scenario, in which the price of the asset increases to a value higher than the upper limit. In this scenario, the asset will be frozen. This means that the asset can no longer be minted and that long tokens can be burned for the upper limit price. Short tokens become worthless in this scenario.