🔎EXAMPLE

• Paxton holds 1,000 ETH and wants to generate liquidity without selling.

• He uses ABSTruck Finance to mint USDP and earn yield.

• ETH Price: $3,000 → Total Collateral Value: $3,000,000.

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Step 1: Collateralization (150%)

Paxton deposits 1,000 ETH ($3M) into a Truck Vault.

• Minimum Collateralization Ratio: 150%.

• Maximum USDP Mintable:

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  USDP = Collateral Value / 1.5  
  USDP = $3,000,000 / 1.5 = **2,000,000 USDP**  

• Stability Fee: 3% APR (payable in USDP or ATP).

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Step 2: Yield Strategy

Paxton uses the minted USDP in this way:

TSR (Truck Savings Rate)

1. Locks 2M USDP in Truck Finance (TSR: 6% APY).

2. Annual Yield:

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   2,000,000 USDP × 6% = **120,000 USDP**  

Note: Paxton still pays the 3% stability fee on his debt:

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2,000,000 USDP × 3% = 60,000 USDP (annual cost).  

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Step 3: Risk Management

• If ETH drops to $2,700 (-10%):

  • New collateral value: 1,000 ETH × $2,700 = $2,700,000.

  • Collateral ratio: $2,700,000 / $2,000,000 = 135% (below 150%).

  • Automatic Liquidation:

    • ETH is sold to repay 2M USDP + 13% penalty.

    • Paxton loses some WETH but the debt is covered.

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Benefits for Paxton

✅ Maintains ETH exposure (if WETH price rises, his 1,000 ETH appreciate). ✅ Earns passive yield (net +60K USDP/year). ✅ No forced selling (as long as collateral ratio >150%).

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Risks

⚠️ Liquidation if ETH crashes significantly.