What is UPS ?
The Up share token (UPS) is the non-stable, functioning to hold rights to governance and all excess collateral of the system
It also allows users to receive income by staking it.
The circulating supply of UPS token changes because it is both burned when someone uses it to mint a UPFI token and it is also minted when someone redeems UPFI token.
How to earn UPS?
Users can farm UPS by providing liquidity and depositing their LP tokens on Upfi.network’s own website. These farms are not auto-compounding, however next pool maybe offer auto-compounding farming options as well. All of the following liquidity farming pools are 50%-50% ratio UPS farming pools. There is no locked rewards with any of the pools.
Effective Collateral Ratio (ECR)
ECR stands for Effective Collateral Ratio and it is showed in percentage. This percentage expresses the amount of BUSD token stored as collateral for the UPFI token.
If the Target Collateral Ratio (TCR) is lower than ECR, then the protocol has Excess Collateral. TCR is usually lower than ECR when the demand for the UPFI token is high and the price stays above the peg.
If the TCR is higher than the ECR, then the protocol has no Excess Collateral. TCR is usually higher than the ECR when the price of the UPFI toke stays around and below the peg to 1$ for extended period of time.
If you would like to redeem 1,000 UPFI token and the ECR percentage is 85%, then you should receive 850 BUSD token and 150 BUSD worth of UPS token.
Target Collateral Ratio (TCR)
TCR stands for Target Collateral Ratio and it is showed in percentage. This ratio expresses what percentage of BUSD token is required to mint UPFI token.
If the time weighted average price of UPFI token in the past hour is more than $1.00, then the protocol lowers the TCR by 0.25%. If it is less than $1.00, then the protocol increases the TCR by 0.25%.
TCR can increase or decrease by maximum 0.25% per hour and maximum 6.00% per day.
If TCR is 75%, then the user needs to provide 75% BUSD token and 25% STEEL token to mint UPFI token.
Platform Overview Diagram