Crafting Finance Academy

Weekly Questions

What is Sharing Debt pool and how to calculate debt ratio?

Once a user minted some synthetic assets, the assets can be put into the sharing debt pool (SDP),and the user will be assigned a fixed debt ratio which is the ratio of the value of the user’s synthetic assets to the value of all synthetic assets in the entire system. “Fixed” means this ratio will not change due to changes in asset prices, and will be used to calculate the user’s profit and loss. This ratio will only change when a new user mints new asset or an existing user destroys existing assets.

Bellows are three examples to illustrate how we calculate every user’s debt ratio.

Example 1: Assuming that there are only two users in the system, A and B, A and B each generate rUSD worth $100 after collateralizing a certain amount of CRF, that is, the system generates a total of $200 rUSD. At this time, the debt ratio of user A is 100/200=50%, and the debt ratio of user B is also 100/200=50%.

Example 2: Immediately following Example 1, suppose another new user C joins and newly generated rBTC worth $200. At this time, the total assets of the system are rUSD $200 and rBTC $200, which is a total of $400. Therefore, the debt ratio of users A and B is adjusted to 100/400=25%, and the debt ratio of new user C is 200/400=50%.

Example 1 illustrates the generation of debt ratio in the initial state of the system, and Example 2 illustrates how new users will affect the re-division of debt ratio. What follows is an example of a more general situation.

Example 3: Assume that the entire system has generated a synthetic asset of $100K, and now a new user X has joined and generated a synthetic asset of $100. Then the debt ratio of user X is 100/(100+100000)=0.0999%. Suppose that there was an old user A whose debt ratio was 0.2%.

After X is added, the debt ratio of user A becomes 0.2%×100000/(100+100000)=0.1998%. By analogy, we can calculate the change in the debt ratio of all users.

What is our plan in token sale?

• Distribution

Crafting Finance Token: CRF

Max Supply: 2,000,000,000

The Crafting Finance (CF) token is CRF, with a hard cap of 2 billion. The token distribution is:

40% for liquidity Incentive;

19% for offering and sale;

1% for initial liquidity;

14% for ecosystem partners;

6% for project marketing;

5% for advisors;

15% for team.

Crafting Finance Links

🌐 Website: http://crafting.finance/

🚅 Twitter: https://twitter.com/craftingfinance

🚤 Telegram group: https://t.me/craftingfinanceofficialgroup

🛳️ Telegram Channel: https://t.me/craftingfinancechannel

⛴️ Discord: https://discord.gg/89upsrRUNY

🚢 Medium: https://medium.com/@craftingfinance