# Inter Protocol User & System Docs ### Welcome Explore our docs which include broader system-level documentation and user how-to guides to help you dive in and start using the Inter Protocol. ### Introduction **What is the Inter Protocol?** The Inter Stable Token (IST) is an evolving, fully collateralized, cryptocurrency-backed decentralized stable token for the interchain ecosystem on the Agoric chain. The Inter Protocol, which mints IST, will grow to encompass a variety of minting mechanisms controlled with granular minting limits that creates a dynamic stable token model which has never existed before. IST is designed to maintain parity with the US dollar (USD) for broad accessibility and provide Agoric and the interchain ecosystem users an asset with minimum price volatility. In addition, IST is the native fee token for the Agoric platform and provides some of the core functionality and stability for the Agoric cryptoeconomy. The broader Inter Protocol comprises of a set of contracts, deployed on the Agoric blockchain, which manage the minting, burning, stability mechanisms, and governance of IST. See an example diagram of expected core contracts and their relationships below. This model will evolve with Inter Protocol based on the desires of the BLD community. ![Inter Protocol contract flow diagram](https://lh5.googleusercontent.com/wnaZXiSS3cuWBmtbACyv5aw6DeqUepZ_eP3G2Pgp75oxj7balatvemuImSAv0Yv7nzAwnQduygirTVIiMOZL5FGzm9jx1Uuq1OaUDET5EFmLT3lNzBM_IMNRXjqJnX-aDybtqr-bpqrx3itGVy0pJg) Feel free to explore our system documentation to learn more about: 1. How IST is governed 2. How IST maintains its stability 3. How each contract operates, with links to the code Welcome to the Inter Protocol! # Wallet Usage This section explains how to setup and use your Agoric account, Smart Wallet and Keplr Wallet for the Cosmos ecosystem / Interchain. [Acquiring BLD Tokens](/user-how-to/wallet-usage/acquiring-bld-tokens) [Create your Agoric Account and Smart Wallet](/user-how-to/wallet-usage/create-your-agoric-account-and-smart-wallet) [Keplr Wallet Overview](/user-how-to/wallet-usage/keplr-overview) # Acquiring BLD Tokens BLD tokens are needed in order to provision an Agoric Smart Wallet, which is used by Inter Protocol dApps including the Parity Stability Module (PSM). There are several ways to acquire BLD tokens: 1. Buy On Decentralized Exchanges (DEXes) including ***Osmosis*** and ***Crescent*** 2. Buy On Centralized Exchanges (CEXes) including ***Huobi*** * [How to buy $BLD on Osmosis](/user-how-to/wallet-usage/acquiring-bld-tokens/how-to-deposit-assets-to-osmosis) * [How to transfer $BLD from Osmosis to Agoric Chain](/user-how-to/wallet-usage/acquiring-bld-tokens/how-to-swap-for-bld-tokens-from-osmosis-and-transfer-to-agoric) * [How to buy $BLD on Crescent](/user-how-to/wallet-usage/acquiring-bld-tokens/how-to-swap-for-bld-on-crescent) * [How to buy $BLD on Huobi](/user-how-to/wallet-usage/acquiring-bld-tokens/buying-bld-from-huobi) # How to Deposit Assets to Osmosis If you already have assets on Osmosis, you will be able to swap for BLD on the Osmosis [Swap](https://app.osmosis.zone/) page. Note you will also need some $OSMO to move your BLD from Osmosis to the Agoric chain. If you need to deposit assets first, please follow below instructions: 1. Navigate to 2. Connect your Keplr wallet by hitting 'Connect Wallet' in bottom left corner: 3. ![](/files/yc383RqpsamHushNSCCg) 4. Hit 'Deposit' at top of page: 5. ![](/files/4oxhdGhcJ71jMP0w2v94) 6. Select the asset you wish to deposit into Osmosis. You will be swapping this asset for BLD: 7. ![](/files/ZcrW0RFBR5X3YVEk3trr) 8. Enter amount you wish to deposit then hit 'Deposit': 9. ![](/files/NLnwOuWK1S1Dj4bkfMl8) 10. You will be prompted to sign the transaction in Keplr. Hit 'Approve'. Your assets are being added via IBC transfer. Your balance will update to reflect addition of assets. Congratulations, you've now acquired some BLD tokens! 11. ![](/files/bnPAep20kuFkykKevtmX) # How to swap for BLD tokens from Osmosis and transfer to Agoric 1. Navigate to the Osmosis Swap page [https://app.osmosis.zone/](https://app.osmosis.zone/?from=ATOM\&to=OSMO). Choose the amount of tokens to pay and see the amount of BLD you wish to receive and hit 'Swap': 2. ![](/files/cOBnbQr5j04Pe1IA76cW) 3. Approve Keplr transaction: 4. ![](/files/H96kmXJJjJ9dd4YWTAd8) 5. If you don't have any $OSMO is your Osmosis account, now would be a good time to get some. You can simply swap a small amount of the asset you just deposited for some $OSMO - which you will need to cover fee moving your BLD to Agoric chain shortly. In this case I'm swapping some $BLD for $OSMO but you can use any supported IBC asset: 6. ![](/files/BfA5WY4zySJERvMulR4G) 7. Your BLD (and $OSMO if you just swapped for some) will appear in your Osmosis Assets. You will then need to withdraw to Agoric chain. Hit **'Withdraw > '**: 8. ```
``` 9. Ensure destination is 'Agoric' and that address matches your Agoric address in Keplr wallet: 10. ![](/files/AzNGsaKwXDC0b7w1jFlB) 11. Approve IBC transaction in Keplr. 12. Your BLD will appear in your Keplr wallet after a few seconds: 13. ![](/files/615VNEg4kGQutdF49hZO) 14. You're ready to provision your Agoric Smart Wallet. See [*Create Your Agoric Smart Wallet*](/user-how-to/wallet-usage/create-your-agoric-account-and-smart-wallet) for instructions. # How to swap for BLD on Crescent 1. Navigate to 2. Connect your Keplr wallet. 3. Hit '**Deposit New Token**': 4. ```
``` 5. Select the IBC token in 'From' dropdown. The 'To' destination will auto-populate to Crescent address. Enter the amount your wish to deposit and hit 'Deposit New Token' button. 6. Approve Transaction in Keplr: 7. ![](/files/HghLF8N1uG6OmwFOJBJU) 8. Open Keplr wallet, select Network dropdown and locate 'Crescent-1' - it may appear under 'Beta Support' section. Copy your Crescent address. 9. You will need some CRE tokens to proceed. Locate the 'Faucet' button on top right of page. Click Faucet icon: 10. ```
``` 11. Paste copied Crescent address into field and hit 'Send me tokens' to mint a small amount of CRE. You will receive 0.1 CRE in your Keplr wallet which you will need for transaction fees. 12. ![](/files/6bnb0rfBnJZVfzcVbxRR) 13. You will need then to swap your IBC asset for bCRE (BLD is only available on Crescent via the bCRE/BLD pool). To do this navigate to . Select the IBC asset you just deposited i.e. ATOM for source and bCRE for destination. Hit **'Swap'**: 14. ```
``` 15. Approve transaction in Keplr (your will pay a small CRE for this). 16. Return to 'Swap' page and select 'bCRE' as source token and 'BLD' as destination token. Enter amount you wish to swap then hit 'Swap': 17. ```
``` 18. Approve Keplr transaction (you will pay a small CRE for this). 19. Hit 'Manage' on 'Portfolio' page: 20. ```
``` 21. Toggle to 'Withdraw' and verify the populate Agoric address matches your Agoric address in your Keplr wallet: 22. ```
``` 23. Approve Keplr Transaction: 24. ![](/files/U5hzlCw0zWjVRAwIRSqO) 25. After some time, your BLD will appear in your Keplr wallet and your Agoric Smart Wallet: 26. ![](/files/8DUNCA6jXVBiqwKjM8M4) # Buying BLD from Huobi **Note:** To create an account on Huobi, you will need to be a non-US resident. Once you create your account and pass KYC, you can swap/trade USDT for BLD, see pair listing here: . For further information or support see # Create your Agoric Account and Smart Wallet ## How to Provision your Agoric Smart Wallet/Account ***Note:*** You must have the Keplr wallet extension added to your browser (Chrome, Brave etc.) prior to continuing. See [*How to Create Your Agoric Wallet Address*](https://medium.com/chainapsis/how-to-register-your-agoric-wallet-address-c8d8e2fae3f9) for instructions on this. **To setup an Agoric Smart Wallet, one needs 10 BLD tokens. The first entry details how to obtain them and can be skipped if one already has 10 BLD.** 1. Ensure you have at least 10 BLD tokens in your Keplr Wallet (This nominal amount disincentivizes bad actors from carrying out Denial-of-Service (DOS) attacks). This will be required to provision your Agoric Smart Wallet in the next step. You will also receive 0.25 IST which can be used for fees when swapping your stable token for IST. BLD is currently listed on CEXs like Huobi or DEXs Crescent or Osmosis - see [*Acquiring BLD Tokens*](/user-how-to/wallet-usage/acquiring-bld-tokens) for more information on how to acquire BLD. 2. Launch the Agoric Smart Wallet: . You will be prompted to **'Create a Smart Wallet'**: 3. ```
``` 4. Ensure *Network Config* points to mainnet -> and *Wallet Address* matches your Agoric Chain Account address on Keplr. 5. Hit ***'Create'*** 6. Approve transaction in your *Keplr* wallet (or your Ledger): 7. ![](https://lh3.googleusercontent.com/mlUwSfr9hFE3rwXozidtW_vSTzCMhYzOfqxa28GgXiPvQ3k5z6u9o_VESP6fDdUk4LPATDzhszRYq7ZLqGLmLbkPl1vv7fAVYjhzVhoBCIjp-ZsmER4u9nykpR2G9_s4QKFIEBhrPUbEEIgA_TDJvpZjYMunz0TFF9BPdf8uikbet9-KKkm40QokNg) 8. Once your smart wallet provisions you will see your wallet dashboard which includes all purses and purse amounts which includes any supported stable tokens (Axelar-bridged USDC (USDC\_\_*axl), Gravity-bridged USDC (USDC*\_\_grv), Axelar-bridged USDT (USDT\_axl), Gravity-bridged USDT (USDT\_grv)) and BLD you hold in your Keplr wallet: 9. ```
``` Continue to [*Bridging External Tokens to Agoric*](/user-how-to/bridge-external-tokens-to-agoric) to learn how to bridge external tokens like USDC or USDT to the Agoric chain before you try to mint IST using the PSM. Continue to [*Minting IST using PSM* ](/user-how-to/minting-ist/minting-ist-psm)to read instructions about how to mint IST using the PSM. # Keplr Overview In order to interact with the Agoric chain and it's Dapps, you will first need to set up your Keplr browser extension wallet. ## Keplr Wallet and Account Setup See [*How to Create Your Agoric Wallet Address*](https://medium.com/chainapsis/how-to-register-your-agoric-wallet-address-c8d8e2fae3f9) article by Keplr for instructions on how to set up your Keplr wallet, account and locating your Agoric wallet address. # Bridge External Tokens to Agoric Note: **We strongly advise that you use** [**Axelar** ](https://satellite.money/)**and** [**Gravity**](https://bridge.blockscape.network/) **bridge UIs to bridge your assets onto the Agoric chain instead of using IBC transfer functionality on Keplr due to the complexity and risk of user error.** See ['Bridge DAI, USDC or USDT to Agoric via Axelar Bridge'](/user-how-to/bridge-external-tokens-to-agoric/bridge-dai-usdc-or-usdt-to-agoric-via-axelar-bridge) page See ['Bridge DAI, USDC or USDT to Agoric via Gravity Bridge'](/user-how-to/bridge-external-tokens-to-agoric/bridge-dai-usdc-or-usdt-to-agoric-via-gravity-bridge) page ### Recommended pathways for moving assets to and from Agoric **Bridging/Transferring DAI, USDC and USDT to Agoric:** * You have DAI,USDC or USDT on Ethereum, you want to trade for IST: * Use (Axelar UI) or (Gravity UI) to bridge your assets directly to the Agoric chain. See instructions for [Axelar](/user-how-to/bridge-external-tokens-to-agoric/bridge-dai-usdc-or-usdt-to-agoric-via-axelar-bridge) and [Gravity](/user-how-to/bridge-external-tokens-to-agoric/bridge-dai-usdc-or-usdt-to-agoric-via-gravity-bridge). * You have DAI,USDC or USDT on Osmosis, you want to trade for IST: * Use (Axelar UI) to bridge your assets directly to the Agoric chain. **Transferring IST from Agoric** * You have IST on Agoric, you want to transfer to Osmosis: * [Deposit IST via Osmosis UI](/user-how-to/ist-usage-and-beyond/deposit-ist-to-osmosis) * You have IST on Agoric, you want to transfer to Crescent: * [Deposit IST via Crescent UI](/user-how-to/ist-usage-and-beyond/deposit-ist-to-crescent) **Transferring DAI,USDC or USDT from Agoric to Osmosis** * You have DAI\_axl, USDC\_*axl or* USDT\_axl on Agoric, you want to transfer to Osmosis: * Use (Axelar UI) to bridge assets to Osmosis * You have DAI\_grv, USDC\_*grv or USDT\_grv* on Agoric, you want to transfer to Osmosis: * Use (Gravity UI) to bridge assets to Gravity bridge first then from Gravity bridge to Osmosis (2 bridging steps). **Transferring DAI, USDC and USDT from Agoric back to Ethereum** * You have DAI\_axl, USDC\_*axl or USDT*\_axl on Agoric, you want to transfer back to Ethereum: * Use (Axelar UI) to bridge assets back to the Ethereum chain. * You have DAI\_grv, USDC\_*grv or USDT\_grv* on Agoric, you want to transfer back to Ethereum: * Use (Gravity UI) to bridge back to Gravity chain first and then to Ethereum chan (2 bridging steps). **A Note on Supported Assets and Denoms** Once each IBC stable asset is voted in by governance - it's denom (unique identifier) is added so it can interact with Agoric smart contracts. The denom of each bridged IBC asset differs depending on the path it's taken to arrive on the Agoric chain. For example, USDC that has been bridged from Ethereum to Agoric via the Axelar or Gravity bridge will have a different denom to USDC\_axl or USDC\_grv that has been sent from the Axelar/Gravity bridge directly to Osmosis. If you bridge USDC to Osmosis initially, you will need to use Axelar's UI to bridge from Osmosis to Agoric to ensure this asset appears as USDC\_axl and it's denom is recognized by the Agoric Smart Wallet and be able to traded in the PSM. If you don't, it will still appear in your Keplr wallet but you will not be able to interact with the Agoric ecosystem. Follow the pathways above to avoid these compatibility issues. If you're having issues please let us know via 'Support' channel on Discord - we'd be happy to help! # Bridge DAI, USDC or USDT to Agoric via Axelar Bridge In below walkthrough, we will be bridging USDC to Agoric but USDT and DAI follows the same process. It assumes you already have a USDC, USDT or DAIbalance in your Ethereum-source wallet i.e. MetaMask. Note: **We recommend that you use the Axelar bridge even if you are coming from other zones like Osmosis.** 1. Navigate to 2. Hit '**Connect Wallet'** in top right corner: 3. 4. Connect your Ethereum-source wallet i.e. MetaMask 5. ![](/files/hg5lbqlo3KLgYUn7RPfA) 6. Connect your Keplr wallet. You will see your source wallet (MetaMask) and destination wallet (Keplr) logos next to **'Connected'** when you have successfully connected both wallets: 7. ![](/files/upiBgQ0WUkTiCsMV5w5U) 8. Under ***'From'*** select ***'Ethereum'*** as source chain 9. Under ***'To***' select ***'Agoric'*** as destination chain 10. Hit '***Autofill 'K'***' to have Keplr auto-populate your Axelar Deposit Address (This action will pull your Axelar chain address from Keplr if you are connected.) You will be asked to approve connection in your Keplr wallet. Hit 'Approve'. 11. ![](/files/RNl6d8hCcUMHRoZqJkSc) 12. ![](/files/jje9tCWQIVNpsUeyDnFu) 13. **Please confirm address matches in Axelar network address in your Keplr wallet**): 14. ![](/files/kuEWOoRcVHpVE7wwULmt) 15. Select ***'USDC'*** under ***'I want to transfer'.*** If you have a USDC balance in your MetaMask wallet, you will see this appear next to '*Available*' 16. Enter the amount you wish to bridge. ***Note: you must have enough USDC to cover the relayer fee (this is dynamic and can range anwhere from 0-$25 as of time of writing).*** 17. Hit ***'Generate Deposit Address'*** 18. ![](/files/uvfLHsZNi9UqeJkvRASU) 19. A pop-up will appear showing you the 'Deposit Address' (this is the Axelar USDC token contract address). Hit ***'Confirm'*** 20. ![](/files/dhifqsZKorj9qXtK4X5Y) 21. Hit ***'Send From MetaMask'***: 22. ![](/files/wKro9FYLABODpXoMSEy6) 23. You will be prompted to confirm transaction in MetaMask, hit ***'Confirm'.*** *Note: **You must have enough ETH balance in your MetaMask wallet to cover the gas fee*****.** 24. ![](/files/1IRgMjlk360MzXg5TiJd) 25. It may take up to \~15mins for your transaction to complete. You will be able to view transaction on etherscan through this link: 26. ![](/files/88boFt0cowacJfDle38M) 27. Once complete, you will see your USDC balance appear in your Agoric account on your Keplr wallet and in your Agoric Smart Wallet: 28. 29. ```
``` 30. Congrats - you've successfully bridged to Agoric and are ready to use the PSM to mint IST! # Bridge DAI, USDC or USDT to Agoric via Gravity Bridge In below walkthrough, we will be bridging USDC to Agoric but USDT and DAI follows the same process. It assumes you already have a USDC, USDT or DA balance in your Ethereum-source wallet i.e. MetaMask. 1. Navigate to 2. Under 'To, select **'Agoric'** network to transact on: 3. ```
``` 4. Under 'From' 'Ethereum', hit **'Connect'** to connect your Metamask or similar wallet. 5. Under 'To' **'Agoric',** hit 'Connect to connect your Keplr wallet. 6. When both are connected, it will look like this:
7. Under '**Amount',** select 'Token' dropdown and pick **'USD Coin'.** 8. Enter amount you wish to bridge 9. Hit **'Give Permission to transfer USDC'** 10. ```
``` 11. Confirm Transaction in your wallet (MetaMask etc.) 12. Hit **'Begin Transfer'** 13. Approve Transaction in your wallet (MetaMask etc.) 14. Wait For Transaction to complete: 15. ![](/files/q75J6smrTcZ6wbZ16k7V) 16. Once Complete: 17. ![](/files/Y2HxwRJmb18LdYsv95Oy) 18. You will see your bridged USDC appear in your Keplr wallet and Agoric Smart Wallet: 19. ![](/files/MlJ41hIrxycLXtSY9U99) 20. ```
``` 21. Congrats - you've successfully bridged to Agoric and are ready to use the PSM to mint IST! # Minting IST IST is minted through the Inter Protocol contracts. The two minting mechanisms include Vaults and the Parity Stability Module (PSM) contracts. 1. [Minting IST - ***(PSM)***](/user-how-to/minting-ist/minting-ist-psm) 2. Minting IST using [***Vaults***](/user-how-to/minting-ist/minting-ist-vaults) *(see* [*Create a Vault*](/user-how-to/minting-ist/minting-ist-vaults/create-a-vault)*)* # Minting IST - Vaults Vaults are Inter Protocol's flagship product and IST minting mechanism. User's specify how much collateral they wish to lock-up to mint a corresponding amount of IST (subject to vault parameters). Vaults are over-collateralized upon creation subject to governed parameters as set by the Economic Committee. ### Fees Vaults are subject to both a minting fee and a stability fee. In the event of a liquidation, vault holders are also subject to a liquidation penalty. **Minting Fee** -> This is a once-off fee charged in IST each time you mint and IST amount i.e. upon creation of the fault and when you adjust vault to mint more. This is also a governed parameter set by the Economic Committee. **Stability Fee** -> This is ongoing cost of holding the debt position. It is charged in IST and calculated as % APY. It is added to you IST debt position over time. It is a governed parameter set by the Economic Committee. **Liquidation Penalty** -> In the event of severe market movements, the value of your collateral may drop below the liquidation ratio. If this occurs and you do not take action to add additional collateral or repay some IST debt to increase your collateralization ratio, your vault will be liquidated in order to repay the outstanding IST debt. In addition to this you will be charged a liquidation penalty, charged in collateral asset type which will be sent to the reserve. This is a governed parameter set by the Economic Committee. **Note:** It's important to keep an eye on your collateralization ratio and to avoid liquidation. To reduce the risk of liquidation, it is recommended you keep your collateralization ratio at an adequate level that would weather severe market movements. ### Using Assets as Collateral You will need to IBC transfer assets to the Agoric chain in order to use them as Vaults collateral. You can do this via Agoric's Smart Wallet 'Deposit' feature. More instructions on this and other Vaults actions below: * [Create a Vault](/user-how-to/minting-ist/minting-ist-vaults/create-a-vault) * [Adjust Vault](/user-how-to/minting-ist/minting-ist-vaults/adjust-vault) * [Close Vault](/user-how-to/minting-ist/minting-ist-vaults/close-vault) * [Depositing assets to Agoric chain (to use as Vaults collateral)](/user-how-to/minting-ist/minting-ist-vaults/depositing-assets-to-agoric-chain-to-use-as-vaults-collateral) # Create a Vault Step-by-step guide on how to create a vault and Mint IST 1. Navigate to Vaults dapp UI, [app.inter.trade](https://app.inter.trade/). 2. Hit 'Connect Wallet' in top right. If you have not created an Agoric Smart Wallet please follow the steps at '[Create your Agoric Account and Smart Wallet](/user-how-to/wallet-usage/create-your-agoric-account-and-smart-wallet)' then return and continue from here. 3. The first time you connect your wallet to the Vaults UI Dapp, you may see a 'Read Only' Mode pop-up. This means you haven't yet accepted the dapp connection from your Agoric Smart Wallet. Click the link in the pop-up to navigate to the Agoric Wallet UI where you'll be able to approve Dapp connection. By approving, you are essentially saying 'yes - I agree to let this dapp propose offers'. Note you'll be prompted to do this every time there is a new Vaults UI IPFS hash published by the Economic Committee. 4. Once dapp connection has been approved, you'll be able to create a vault. Hit 'Add New Vault': 5. ```
``` 6. Review and choose collateral type and parameters (note: we are launching with ATOM collateral type which will be pre-selected). 7. ```
``` 8. You will need to have the collateral you wish to lock-up on the Agoric chain. If you have already done this, you can proceed to step 6 otherwise see '[Depositing assets to Agoric chain (to use as collateral)](/user-how-to/minting-ist/minting-ist-vaults/depositing-assets-to-agoric-chain-to-use-as-vaults-collateral)' to complete this first. 9. Enter the collateral amount you wish to lock up. Note: hitting 'Max' button will auto-fill the maximum collateral amount based on your wallet balance. 10. ```
``` 11. Enter the IST amount you wish to receive. Note: the collateralization percent will be auto-calculated once you enter this amount based on your previously input locked collateral amount. If you wish to mint the maximum amount of IST based on the locked collateral amount and the minimum collateralization ratio - you can hit the 'Max' button. You can always manually configure either field to tweak vault parameters to your specific liking. 12. Review vault details in the Vault Summary preview pane on the right and hit 'Create Vault' to submit to your Agoric Smart Wallet for approval. 13. ```
``` 14. You will be prompted to navigate to your Agoric Smart Wallet to approve. Clicking 'Go To Wallet' will open a new browser tab of your wallet or bring you to existing wallet tab. 15. ```
``` 16. Hit 'Approve' on offer tile in your Agoric Smart Wallet. Note the long URL is the IPFS hash of the latest referenced Vaults UI. 17. ```
``` 18. Hit 'Approve' when prompted by Keplr pop-up to sign transaction 19. ![](/files/WIyWmUXvbYJ0idVUi1Py) 20. Once transaction is successful, your vault is created - congratulations! Navigate back to the Vaults UI to see your new vault appear under 'My Vaults': 21. ```
``` # Adjust Vault Step-by-step guide on how to adjust the collateral and/or debt configuration on your vault 1. From Vaults UI, click the vault you wish to adjust. 2. ```
``` 3. Select one or multiple actions you wish to take on the vault and enter adjustment amounts. NOTE: you may perform a single or multiple vault adjustment actions in the same transaction. i.e. deposit more collateral and mint more IST. These include: 1. Deposit (collateral) -> Deposit additional collateral into your vault. Increases the collateralization ratio of your vault 2. Withdraw (collateral) -> Withdraw collateral from your vault to your wallet. Decreases the collateralization ratio of your vault 3. Repay (IST) -> Reduces your IST debt and increases your collateralization ratio 4. Mint More (IST) -> Increases your IST debt and reduces your collateralization ratio 4. ```
``` 5. Hit 'Adjust Vault' button in 'Vault Summary' pane on right. You will be prompted to navigate to your Agoric Smart Wallet to approve transaction: 6. ![](/files/3qKuKAhsgyFYYDSsHFza) 7. Hit 'Approve' button in Agoric Smart Wallet to send transaction to Keplr for signing. 8. ```
``` 9. Sign transaction in Keplr pop-up to transmit transaction to chain. 10. ![](/files/Pm0FI5IttD5F0qQxKHmo) 11. Your vault will update automatically once transaction is successful. # Close Vault Step-by-step guide on how to close out your vault to repay outstanding IST and withdraw your locked collateral 1. From Vaults dapp UI, click the vault you wish to close. 2. ```
``` 3. Hit 'Close Out Vault' button on bottom left. 4. ```
``` 5. You will be prompted to confirm action which includes a preview of the IST amount you are about to repay and the collateral amount you will receive back. Hit 'Close out Vault' to send to your Agoric Smart Wallet for approval. 6. ```
``` 7. Hit 'Approve' in your Agoric Smart Wallet to send the transaction to Keplr for signing: 8. ```
``` 9. Approve/Sign transaction in Keplr pop-up: 10. ![](/files/iB7Aq5gs7Uk1ClgXnVjn) 11. Your vault will close once the transaction is successful. Note you will be unable to take any further action on this vault once closed. # Depositing Assets to Agoric Chain (to use as Vaults collateral) Step-by-step how-to guide explaining how to use the IBC transfer feature in the Wallet UI. 1. You must have an Agoric Smart Wallet provisioned. If you have not done so already please see ['Create your Agoric Account and Smart Wallet'](/user-how-to/wallet-usage/create-your-agoric-account-and-smart-wallet). 2. Launch [Agoric Smart Wallet UI](https://wallet.agoric.app/wallet) 3. Hit 'Deposit' button for the asset you wish to deposit: 4. ```
``` 5. You may get a Keplr prompt to add 'Cosmos Hub': 6. ```
``` 7. Specify the amount you wish to deposit. Source chain address will default to native token chain i.e. for ATOM this will be Cosmos. Your Agoric chain address should auto-populate. Hit 'Deposit ATOM': 8. ![](/files/FhfSKeFyQtBlTNASibtx) 9. This will perform an IBC transfer of the asset from the source chain to the Agoric chain. (You can similarly use it to withdraw your asset from the Agoric chain to a specified destination chain.) 10. Approve IBC transfer transaction in Keplr pop-up: 11. ![](/files/b87FcrLLx48bLgR8mQ4W) 12. When the transaction completes your asset balance will update. In this example, you will see your ATOM purse increase by 1 ATOM. This amount will be available to lock up as collateral in Vaults dapp UI. 13. You're now ready to [create a vault](/user-how-to/minting-ist/minting-ist-vaults/create-a-vault)! **Always review and validate the destination addresses before transferring to ensure you are sending to right account.** # Minting IST - PSM Note: Make sure you have provisioned your Agoric Smart Wallet before proceeding. See Wallet Usage -> Create Account for how to guide. ## Step 1: Connect PSM Dapp to Agoric Smart Wallet 1. Navigate to . **Note: if you are using Brave browser, please ensure to turn off Brave shields before proceeding as it will interfere with the dapp->wallet communication.** 2. Verify you are connecting to 'Agoric Mainnet' in drop-down then click ***'Connect Keplr'*** on far right: 3. ```
``` 4. Once complete you'll see 'Keplr Connected' and you will see IST Swap panel features appear however you will need to accept the dapp connection in your Agoric Smart wallet to continue: 5. ```
``` 6. Launch . In 'Dashboards' view - hit *'**Accept'*** for PSM Dapp Connection. 7. ```
``` 8. You've now connected the PSM Dapp to your Agoric Smart Wallet and are ready to mint IST on the PSM! ## Step 2: Mint IST 1. Navigate back to the your PSM UI browser tab (or re-open in a new tab) 2. On the IST Swap feature input screen, click 'Select Asset' in the 'Swap From' dropdown and select the stable asset you wish to swap for IST. 3. ```
``` 4. Enter the amount you would like to swap and hit **'Create Swap Offer'** (Note: Any applicable fees (in IST) will be deducted and reflected in your quoted IST amount.): 5. ```
``` 6. You will see confirmation of swap offer sent in bottom right corner of the PSM: 7. ![](/files/hOm17Qvxzi1M728SVHLH) 8. Navigate back to your **Agoric Smart Wallet** browser tab. You will see the swap offer appear as a panel on the right of you purses. In this example the stable token you are swapping for IST is the 'Give In' token with 'Want Out' token being IST. You will also see the Review and hit **'Approve'**: 9. ```
``` 10. You will then be prompted to approve transaction in your Keplr wallet (or your Ledger) - hit **'Approve'**: 11. ![](/files/voTszvCdp5D2TjfkcNz5) 12. Upon completion of the swap, the offer will update from 'Pending' to 'Accepted', your IST will appear in your **Agoric Smart Wallet** purse and in your **Keplr** wallet (under ‘**Tokens**’): 13. ![](/files/0pRJVQdbWeUxXN6C4bxu) 14. ![](/files/UnagjcjE84eSF65KG7dr) 15. ```
``` 16. Congratulations! You have just minted $IST and are ready to #ridethecosmos! ## To Swap IST back for a stable token **Note: We strongly advise that you do not trade away all of your IST as doing so means you will no longer have any IST for future trades.** To swap your IST back to a stable token, hit the ‘***reverse/switch***’ toggle on the IST Swap dialog box on . You will need to similarly approve the offer in your Agoric Smart Wallet and approve Keplr transaction (as above). # Bidding for Liquidated Collateral As of Vaults launch - bidders will be able to bid on liquidated vaults collateral via a CLI (Command Line Interface) tool. Bidding UIs may be built by the community or in the future by the Inter Protocol team. The first thing you'll need to do is install and configure the CLI tool. Follow instructions at [Inter Protocol Liquidation Bidding Test Tool installation/setup readme](https://github.com/Agoric/agoric-sdk/blob/master/packages/inter-protocol/test/auction/README-bidding-cli.md). ## TLDR: CLI Commands for Bidding The following commands will clone the Agoric SDK, install tooling, and place a bid. You will need to modify them for your bidding details. If you are not using a Ledger to sign, you'll need to do key management differently. See below for additional details. #### **Set-up and Configuration** {% code lineNumbers="true" %} ``` git clone https://github.com/Agoric/agoric-sdk cd agoric-sdk SKIP_DOWNLOAD=false ./bin/agd build export PATH=$PWD/bin:$PATH alias inter="yarn run --silent agops inter" export AGORIC_NET=main ``` {% endcode %} #### **Add account (Ledger)** ``` agd keys add bid-acct --ledger --coin-type=118 ``` Note: "bid-acct" is a name for the account and is used below in examples. However, feel free to name the account however you wish. This key command will use the derivation path for account 0 with that ledger seed phrase. If you want to bid on a non-ledger account, you will need to handle key management in the CLI differently. Be careful of which options display seed phrases or store them in the clear on your machine. Use the --help command on "agd keys add" for details. #### **Place a bid (by Price)** {% code overflow="wrap" %} ``` inter bid by-price --price 9 --give 50IST --maxBuy 10000ATOM --generate-only --from bid-acct >spend-action.json ``` {% endcode %} {% code overflow="wrap" %} ``` agd --node=https://main.rpc.agoric.net:443 tx swingset wallet-action --allow-spend "$(cat spend-action.json)" --chain-id=agoric-3 --fees=5000ubld --from bid-acct --sign-mode amino-json ``` {% endcode %} Modify the bid details above to match what you desire. The example places a bid of 50 IST for ATOM (maximum of 10000) at a price of $9. If you are not using a Ledger, the second command should not include the --sign-mode amino-json modifier #### **Place a bid (by Discount)** {% code overflow="wrap" %} ``` inter bid by-discount --discount 5 --give 50IST --maxBuy 10000ATOM --generate-only --from bid-acct >spend-action.json ``` {% endcode %} {% code overflow="wrap" %} ``` agd --node=https://main.rpc.agoric.net:443 tx swingset wallet-action --allow-spend "$(cat spend-action.json)" --chain-id=agoric-3 --fees=5000ubld --from bid-acct --sign-mode amino-json ``` {% endcode %} Modify the bid details above to match what you desire. The example places a bid of 50 IST for ATOM (maximum of 10000) at a 5% discount to the oracle price. Note that "oracle price" refers to the oracle price at the **start of the auction**. If you are not using a Ledger, the second command should not include the --sign-mode amino-json modifier ## Liquidation Bidding Discussion & Details ### Things to Know * Important: to support some critical bidding capabilities, bids for Inter Protocol do not benefit from Zoe offer-safety * You must specify if you are bidding for a particular collateral type by using the '--maxBuy' argument i.e. '--maxBuy 5000stATOM' infers you are a) bidding for stATOM and b) for a maximum of 5000 stATOM. For ATOM it would be '--maxBuy 5000ATOM' etc. * You can bid at specific prices or at discounts to the oracle price. The oracle price is locked at the start of the auction and discounts calculate off of that price (i.e., they do not update in real time as the market shifts during the course of the auction) * You can place liquidation bids even when there is no active liquidation happening. The bid will remain in the auction order book until it is filled or cancelled * Once a bid is placed, the IST amount you are bidding with is removed from your wallet balance. * If your bid is successful, you will receive the collateral as payout as per your bid terms. * If you cancel an active/existing bid, your IST will be returned to your wallet balance. * Your bid may also be partially filled if it is the concluding bid of the auction. Partially filled bids will remain in the order book to be fully filled in future auctions unless they are exited ### Check Auction Status While you can place liquidation bids even when there is no active liquidation happening, it may be useful in your bidding strategy to know whether a liquidation is taking place and where the auction is at that point in time amongst others. You can check the status as well as other important liquidation-specific pieces of information such as: * nextStartTime -> This is when the next auction is scheduled to take place. Time is in UTC. * startPrice -> Starting price of the auction. This is the current market price as per oracle. * currentPriceLevel -> Once the auction has started, this indicates the step price the auction is currently at. * startProceedsGoal -> This is the target IST debt amount based on liquidated vaults. The auction will keep ticking forward to sell enough collateral to satisfy this amount. * startCollateral -> The amount of collateral that has been liquidated and sent for auction. * collateralAvailable -> The amount of collateral remaining at that point in time of the auction. If the auction sells enough collateral to satisfy outstanding IST debt, the auction may end with unsold collateral which will be distributed back to vault holders (minus penalty fee). * DiscountStep -> This is the price step change size (in %) the auction will follow * ClockStep -> This is how long each price step last before proceeding to next downward price step change. * LowestRate -> This is the lowest discount rate the auction will reach before stopping. I.e. the auction will not sell collateral beyond this discount rate. To check this run `inter auction status --book 0` in your terminal window after you've installed the CLI bidding tool to check ATOM auction status or `inter auction status --book 1` to check stATOM auction status. Sample output: ``` { "activeStartTime": "2023-07-05T15:22:00.000Z", "nextStartTime": "2023-07-05T15:32:00.000Z", "nextDescendingStepTime": "2023-07-05T15:23:40.000Z" }, "book0": { "startPrice": "12.34 IST/ATOM", "currentPriceLevel": "10.489 IST/ATOM", "startCollateral": "0 ATOM", "collateralAvailable": "0 ATOM" }, "params": { "DiscountStep": "5.00%", "ClockStep": "00:00:20", "LowestRate": "65.00%" } } ``` The liquidation auctions will continue until enough IST has been raised to satisfy the liquidating debt, after which the liquidation will be complete. After each successful auction, liquidation status will update to reflect progress with liquidating collateral and debt reducing over time. ### Placing Bids When placing a bid you’ll need to specify the amount of IST you are bidding with and the collateral price you are willing to accept/have your bid filled at. You can specify the price in one of two ways: 1. specific price ($) -> (inter bid by-price --price X.XX --give XIST --maxBuy XATOM --from bid-acct) 2. as a % discount to the oracle price (%) -> (inter bid by-discount --discount X --give XIST --maxBuy XATOM --from bid-acct) ### How To Bid 1. By discount -> You’ll do this by entering the **`inter bid by-discount`** command. Example: Let’s say you want to place an 50 IST bid for ATOM (maximum of 10000) at a 10% discount price from the oracle price. When submitting a bid, use `--generate-only` to first output it to json: e.g. `inter bid by-discount --discount 10 --give 50IST --maxBuy 10000ATOM --generate-only --from bid-acct >spend-action.json`. (Note: it doesn't matter which address you use here, but the tool requires a well-formatted address or a name in your keyring) 2. Then use `agd` to sign and broadcast the offer (including chain ID and fee amount); for example: 1. Example operation (using a ledger): `% agd --node=https://main.rpc.agoric.net:443 tx swingset wallet-action --allow-spend "$(cat spend-action.json)" --chain-id=agoric-3 --fees=5000ubld --from bid-acct --sign-mode amino-json` 2. Example output (using a ledger): `{"body":{"messages":[{"@type":"/agoric.swingset.MsgWalletSpendAction","owner":"agoric1...","spend_action":"{"body":"#{\"method\":\"executeOffer\",\"offer\":{\"id\":\"bid-1688150122262\",\"invitationSpec\":{\"callPipe\":[[\"makeBidInvitation\",[\"$0.Alleged: BoardRemoteATOM brand\"]]],\"instancePath\":[\"auctioneer\"],\"source\":\"agoricContract\"},\"offerArgs\":{\"maxBuy\":{\"brand\":\"$0\",\"value\":\"+1000000000000\"},\"offerBidScaling\":{\"denominator\":{\"brand\":\"$1.Alleged: BoardRemoteIST brand\",\"value\":\"+100\"},\"numerator\":{\"brand\":\"$1\",\"value\":\"+70\"}}},\"proposal\":{\"give\":{\"Bid\":{\"brand\":\"$1\",\"value\":\"+50000000\"}}}}}","slots":["board05557","board0257"]}"}],"memo":"","timeout_height":"0","extension_options":[],"non_critical_extension_options":[]},"auth_info":{"signer_infos":[],"fee":{"amount":[{"denom":"ubld","amount":"5000"}],"gas_limit":"200000","payer":"","granter":""}},"signatures":[]}` `confirm transaction before signing and broadcasting [y/N]: y code: 0 codespace: "" data: "" events: [] gas_used: "0" gas_wanted: "0" height: "0" info: "" logs: [] raw_log: '[]' timestamp: "" tx: null txhash: 119D16E9F9A050FCDB4C450F3A3312E097C5BAFBA39871F2D30095878FED4D78` 3. You'll then need to confirm 'Y' to sign and broadcast - (you may have to approve in ledger if you're using one). The output should include a tx hash such as `38E782E5A70D0704BC76323A7032B3C7FD4940B4EA4AE4CB64AFC9D203AF82A8` which you can look up in an explorer. You can also confirm with `inter bid list` (operation more details on this further below): ``` inter bid list --from [your Agoric address] {"id":"bid-1688145581493","price":"7 IST/ATOM","give":{"Bid":"0.003 IST"},"maxBuy":"1000000 ATOM","result":"Your bid has been accepted"} ``` #### By Price You may also bid by a specific price rather than a calculated discount to the oracle price i.e. '-by-price --price 9.3' (to place a bid bid to buy ATOM for a price of $9.3) instead of '-by-discount --discount 10'. ### List all of your bids Once your bid is successful it will no longer appear in the above list. In order to see all bids (including those that were successful with payouts), you’ll need to append command with ‘–all’. Example: `inter bid list –from bid-acct –all` Output: `$ inter bid list --from bid-acct --all` {% code overflow="wrap" %} ``` {"id":"bid-1697252890125","discount":15,"give":{"Bid":"166.675 IST"},"maxBuy":"1000 stATOM","payouts":{"Bid":"0 IST","Collateral":"17.842423 stATOM"}} ``` {% endcode %} {% code overflow="wrap" fullWidth="true" %} ``` {"id":"bid-1697746565122","discount":15,"give":{"Bid":"5 IST"},"maxBuy":"1000 stATOM","result":"Your bid has been accepted"} ``` {% endcode %} ### Cancel bid Once a bid is placed, the IST amount you are bidding with is removed from your wallet balance until the bid is successful (after which you receive your collateral payout) or you cancel your bid (after which your IST is refunded (reflected as a payout in output)). The current design of our liquidation system constrains the ability to change an existing open bid. Instead, you will need to cancel the open bid and resubmit a new updated bid instead. To cancel a bid you’ll need to use the ‘inter bid cancel’ command then specify the bidID which you can grab from the bid list described above. Example: ``` inter bid cancel bid-1697253297042 --from test-acct --keyring-backend=test ``` Output: 
inter bid cancel bid-1697253297042 --from test-acct --keyring-backend=test
2023-10-25T19:45:45.794498078Z tx not in block 2131521 retrying...
2023-10-25T19:45:51.435408143Z tx not in block 2131522 retrying...
2023-10-25T19:45:51.435408143Z tx not in block 2131522 retrying...
2023-10-25T19:45:57.123880452Z tx not in block 2131523 retrying...
2023-10-25T19:46:02.865817964Z tx not in block 2131524 retrying...
2023-10-25T19:46:02.865817964Z tx not in block 2131524 retrying...
2023-10-25T19:46:08.52605143Z tx not in block 2131525 retrying...
cancel action is broadcast:
{"timestamp":"2023-10-25T19:46:02Z","height":"2131524","offerId":"bid-1697253297042","txhash":"E1FF10FE7E22ED165CCB734F9B26341A938F4FE0F8513BAA312865571E639053"}
bid bid-1697253297042 is no longer live
{"time":"2023-10-25T19:46:14.173352277Z","height":"2131526"}
Then check bid list, `inter bid list --all --from test-acct --keyring-backend=test` to confirm your IST has been refunded under ‘payouts’: {% code overflow="wrap" %} ``` inter bid list --all --from test-acct --keyring-backend=test {"id":"bid-1697252890125","discount":15,"give":{"Bid":"166.675 IST"},"maxBuy":"1000 stATOM","payouts":{"Bid":"0 IST","Collateral":"17.842423 stATOM"}} ``` {% endcode %} # IST Usage and Beyond IST is a stabletoken for the Interchain. As such, you can expect IST to become available across IBC-connected chains. Shortly after launch, incentives will be put in place to reward early users of IST for providing liquidity on major Cosmos DEXes and lending protocols. Stay tuned for specific announcements. IST also functions as the primary execution fee token on the Agoric chain - specifically, within the Agoric VM execution model. As the Agoric chain matures, IST's critical role in supporting chain execution and contract payments will become an ever larger driver of its usage. [How to deposit IST to Osmosis](/user-how-to/ist-usage-and-beyond/deposit-ist-to-osmosis) [How to Earn BLD rewards by adding liquidity to IST/OSMO pool on Osmosis](/user-how-to/ist-usage-and-beyond/earn-bld-by-adding-liquidity-to-ist-osmo-pool-on-osmosis) [How to Earn BLD rewards by adding liquidity to IST/USDC.axl and IST/USDC.grv on Crescent](/user-how-to/ist-usage-and-beyond/earn-bld-+-cre-rewards-by-adding-liquidity-to-ist-pools-on-crescent) # Deposit IST to Osmosis ## How to deposit IST to Osmosis 1. Navigate to 2. Hit Deposit: 3. ```
``` 4. Type 'IST' in the 'Search Assets' field and Hit Next: 5. ```
``` 6. Your Agoric account address will populate in the 'From' field. Select the amount of IST you wish to deposit and hit 'Deposit IST' 7. ```
``` 8. Approve transaction in Keplr pop-up: 9. ![](/files/NWpd9L6HG0DeVMnuQEzL) 10. Your Osmosis IST balance will update when transaction completes: 11. ```
``` 12. You've successfully transferred IST from the Agoric chain to the Osmosis chain! # Deposit IST to Crescent ## How to deposit IST to Crescent 1. Navigate to 2. Hit 'Deposit New Token': 3. ```
``` 4. Type 'IST' in the 'Want to Transfer' dropdown: 5. ```
``` 6. Select 'IST' and the amount you want to deposit: 7. ```
``` 8. Approve transaction in Keplr pop-up: 9. ![](/files/uKJy5tpSjy0zcBh0w1Uv) 10. Your IST will appear under 'My Tokens' once transaction completes in a few seconds: 11. ```
``` 12. You've successfully transferred IST from the Agoric chain to the Crescent chain! # Earn BLD by adding liquidity to IST/OSMO pool on Osmosis 1. First, [deposit IST to Osmosis](/user-how-to/ist-usage-and-beyond/deposit-ist-to-osmosis). You'll also need an equally valued amount of OSMO in order to add liquidity to the other OSMO half of the pool. Alternatively you could use the auto-swap single asset feature. 2. Navigate to or search for 'IST/OSMO' from 'Pools'. (Note: you will have to toggle 'All Pools'): 3. ```
``` 4. Hit 'Add/Remove Liquidity'. Enter the amounts you would like to add to the pool (Note: pool ratio is 50/50 so you must have equivalent assets for each half of the pool): 5. ```
``` 6. Hit 'Add Liquidity'. Approve transaction in Keplr: 7. ![](/files/lhiDHIheJU8uxeO8FsBq) 8. You will see your liquidity balance under Liquidity Mining -> Available LP Tokens. Hit 'Start Earning': 9. ```
``` 10. Enter the amount you wish to 'bond'. Note: you must bond in order to earn rewards. Your tokens will be bonded for 14 days which means you will be unable to move them during this period. Hit 'Next': 11. ```
``` 12. Approve transaction in Keplr: 13. ![](/files/YKioB4orhkJLzLy0wjRe) 14. You've successfully bonded your tokens and are now earning BLD rewards. Your 'Bonded Balance' will update under pool information and will also update under 'My Bondings' at bottom of page: 15. ```
``` 16. ```
``` 17. Note: External incentive programs only run for a limited time, you will not earn rewards indefinitely. # Earn BLD + CRE rewards by adding liquidity to IST pools on Crescent Note: You will need IST and either USDC.axl or USDC.grv before proceeding. 1. Navigate to [https://app.crescent.network/farm ](https://app.crescent.network/farm) 2. Connect your Keplr wallet 3. Navigate to . You must first transfer your IST from Agoric to Crescent and your accompanying pool token USDC.axl or USDC.grv from it's source before you can deposit into a liquidity pool: 4. ```
``` 5. Hit 'Deposit New Token'. Select 'IST' under 'From' dropdown. 'To' will auto-populate to Crescent address. Enter the amount you wish to deposit and hit 'Deposit': 6. ```
``` 7. Approve IBC transfer via Keplr: 8. ```
``` 9. For USDC.grv, simply follow similar 'Deposit New Token' process as IST above. For USDC.axl, you will need to use Axelar UI [https://satellite.money/ ](https://satellite.money/)to transfer your USDC.axl assets to Crescent. 10. Select your asset source chain and 'Crescent' for 'To' chain. Enter amount you wish to bridge. Note you will have to pay relayer gas fees. Hit 'Autofill' Keplr address and then 'Generate Deposit Address': 11. ```
``` 12. Approve transaction on Keplr: 13. ```
``` 14. Assets will appear in your Portfolio upon completion of transfer. You're now ready to deposit to a liquidity pool! 15. ```
``` 16. Navigate to 17. Search for 'IST' to locate the pools:
18. Click the pool you wish to deposit into: 19. ```
``` 20. Enter pair amounts you wish to deposit then hit deposit: 21. ```
``` 22. Approve transaction in Keplr - Note: you will need some CRE token to cover txn fees. You can faucet CRE from Crescent main page if needed: 23. ![](/files/WEznotkWBWL6WDUV6WLX) 24. Toggle the 'Farm' tab, hit Max and then 'Farm' to lock your pool tokens: 25. ```
``` 26. Approve transaction in Keplr: 27. ```
``` 28. Congrats! You're now earning BLD rewards for adding liquidity! The pool will now appear under 'My Pools': 29. ```
``` # Supported Browsers Inter Protocol dapps are currently supported on the following browsers: * Google Chrome * Brave (currently users must disable their shields as this interferes with the Agoric Wallet UI connection) * Firefox (users must disable shields by turning 'Enhanced Tracking Protection' off) Not yet supported: * Microsoft Edge * Safari We may support other browsers in future. # Inter Protocol System Overview The Inter Stable Token (IST) is an evolving, fully collateralized, cryptocurrency-backed decentralized stable token for the interchain ecosystem on the Agoric chain. The Inter Protocol, which mints IST, will grow to encompass a variety of minting mechanisms controlled with granular minting limits that creates a dynamic stable token model which has never existed before. IST is designed to maintain parity with the US dollar (USD) for broad accessibility and provide Agoric and the interchain ecosystem users an asset with minimum price volatility. In addition, IST is the native fee token for the Agoric platform and provides some of the core functionality and stability for the Agoric cryptoeconomy. The Inter Protocol comprises the set of contracts, deployed on the Agoric blockchain, which manage the minting, burning, stability mechanisms, and governance of IST. This section will approach the Inter Protocol from a system perspective, and the following pages will go into detail about various aspects of the protocol including: 1. How IST is governed 2. How IST maintains its stability 3. How each contract operates, with links to the code Welcome to the Inter Protocol! # Protocol & Chain Governance The Inter Protocol exists on the Agoric chain and includes multiple levels of governance. The first is composed of stakers of Agoric's BLD token, who make chain-level votes about large upgrades to Inter Protocol. The other governing entity is the Economic Committee, which is elected by the BLD stakers to make informed operational decisions around the Inter Protocol. ## The BLD Stakers Stakers of Agoric's BLD token perform governance on the Inter Protocol by making proposals and voting on them at the chain level. These proposals have the capability to cause the chain to execute code at the JavaScript level. The BLD stakers have two primary roles in governance of the Inter Protocol: 1. Elects (and replaces) the Economic Committee, which makes day to day operational decisions for the protocol 2. Agrees upon and/or signals approval for major changes to the protocol such as new collateral onboarding or contract upgrades BLD stakers proposals operate at the Cosmos level and may be voted on by validators in the active set and any BLD staker through their Cosmos level wallet (e.g., Keplr). ## The Economic Committee The Economic Committee is an elected body which has specific, well-defined parameter-level control over contracts within the Inter Protocol. The first Economic Committee was elected on *16th September 2022* from this [on-chain vote](https://wallet.keplr.app/chains/agoric/proposals/15). The Economic Committee has two primary controls over the system 1) changing Inter Protocol risk parameters, 2) contract offer pausing, and 3) execution of specific contract functions. The PSM and Vault systems instantiate new contracts for each new stablecoin or collateral type, and the EC's control expands to those new contracts. The Econ Committee also maintains an emergency power to pause contract functions if necessary. This could be required in the case of a significant asset or bridge failure, or an ongoing exploit. The Inter Protocol’s day to day governance is led by an elected group of representatives (the “Economic Committee” or “EC”) who take action on behalf of the BLD holders. The EC has direct control of contract parameters and also retains the ability to pause contract functions as a disaster response. ### **PSM Parameters** The following parameters in the PSM are controllable by the EC: 1. **GiveMintedFee** - fee on trades where user wishes to trade IST for stablecoin held by the PSM. Expressed as a percentage: (0.03 = 0.03%) 2. **WantMintedFee** - fee on trades where user wishes to trade anchor (external stablecoin) in exchange for newly minted IST 3. **MintLimit** - refers to the max amount of IST, net of burns, that can be minted by this contract ### Vault Parameters The following parameters apply to the vault system as a whole (the Vault Director contract): 1. **MinInitialDebt** - the minimum IST that a new vault must mint 2. **ReferencedUI** - a UI hash that DCF has published as a result of it clearing testing. Inter Protocol front ends may choose to reference this hash 3. **ChargingPeriod** - *Not enabled for Econ Committee control upon launch* 4. **RecordingPeriod** - *Not enabled for Econ Committee control upon launch* The following parameters apply to each vault collateral type independently (the Vault Manager contract) 1. **Mint Limit** - the maximum IST that can be minted by this Vault Manager, net of burns. This parameter limits the IST outstanding per vault manager and is a primary risk management tool 2. **Stability Fee** - the annual fee on a user's minted IST balance, charged regularly, expressed as a percentage 3. **Liquidation Margin** - the collateralization ratio below which vaults are subject to liquidation 4. **Liquidation Padding** - the additional collateralization on top of the liquidation margin which limits how close user vault actions can to the liquidation margin 5. **Liquidation Penalty** - the fee charged upon liquidation of a vault as a percentage of the IST debt 6. **Mint Fee** - the fee on any new IST minted by a vault, charged immediately ### Liquidation Auctioneer Parameters On launch, the Economic Committee may adjust parameters for the liquidation auction as needed to ensure a healthy operation in production scenarios. 1. **Start Frequency** - how often the auction starts, in seconds 2. **Clock Step** - how frequently the auction steps down to the next lower price, in seconds 3. **Starting Rate** - the fraction, in basis points, of the collateral price at auction start time that determines the auction's first offer price 4. **Lowest Rate** - the fraction, in basis points, of the collateral price at auction start time after which the auction ends (lowest price it will sell at) 5. **Discount Step** - the size in basis points of each auction price step down 6. **Auction Start Delay** - the amount of time in seconds after the start of liquidation that the auction waits to receive vaults and other collateral before starting its first step 7. **Price Lock Period** - the current oracle price is locked to use for liquidation decisions at the start of the next auction. The Price Lock Period sets how far in advance, in seconds, the price should be locked ### Contract Offer Pausing As a possible disaster response, Inter Protocol contracts are built with the ability to pause specific offer functions while leaving other functions running normally. Pausing contract offer functions should only be undertaken in response to extreme events and not be part of normal operations. # Vaults The vault contracts have access to the IST mint, receive a price feed from the Flux Aggregator Contract, and work in tandem to allow a user to lock a collateral asset and mint IST against that asset, subject to several parameter constraints. Once a Vault is opened, the holder can adjust it by depositing/withdrawing collateral and minting/burning IST in any combination, so long as their resulting vault meets those core parameter constraints. Users may open multiple vaults of the same type if they wish. The vaults system includes multiple contracts: When a new collateral type is added to Inter Protocol's Vaults, a new Vault Manager contract is instantiated which provides independent settings for risk parameters specific to that collateral type. In the future, there could be multiple Vault Managers per collateral type which would allow different tradeoffs in risk vs. fees.
# Liquidation The code for determining which Vaults get liquidated lives within the vaultFactory. This code deals with ordering Vaults for liquidation, passing them to an auctioneer, burning IST raised for debt, and distributing additional penalties, proceeds, and/or shortfall to the reserve and/or to vault holders. The Vault Manager distributes proceeds, penalties, and/or shortfall to the protocol reserve and possibly back to vault holders depending on the results of the specific liquidation. For more detail, see: # Liquidation Auction The auction code covers the execution of the collateral liquidation auction itself. See The system employs a descending clock auction which starts at or above the current oracle price (as opposed to the locked price which triggers liquidation), and steps down in price filling bids as it goes. Its operation is based on a number of tunable parameters. Below is an example scenario demonstrating how the auction functions: Assume the market price for collateral at the start of the auction is $10. The auction’s first price step is set at $10.50, based on a 105% setting for its `starting rate` parameter * During this step, the auction fills any bids at or above $10.50 at its step price of $10.50, ordered by time the bid was received. “Bids by discount” are translated to priced bids based on the starting price of $10.00 and considered in this step * This step lasts for 180 seconds, based on the auction’s `ClockStep` parameter setting The auction’s second step is set at a price of $10.00, based on its `DiscountStep` parameter setting of 5% (i.e., 5% of the starting price is $0.50) * During this step, the auction fills any bids at or above $10.00 at its step price of $10.00, ordered by time the bid was received. “Bids by discount” are translated to priced bids based on the starting price of $10.00 and considered in this step * This step lasts for 180 seconds, based on the auction’s `ClockStep` parameter setting The auction proceeds by stepping down in the above manner. If it hasn’t reached its IST target amount or sold all its collateral, it continues stepping down until it completes its step at $6.50, based on its `LowestRate` parameter setting of 65%. Most auctions will complete without reaching their final step. Bids that enter during the auction will be considered at any step where they are at or above the step price, however bids are filled in order of arrival. The parameters governing the function of the auction may be set at launch. As written, the contracts grant the Economic Committee a temporary capacity to handle these parameters as the protocol stabilizes. Auction operational tuning is not part of the Economic Committee’s charter, and so an important topic of discussion may be how the community expects this capability to be used. # Parity Stability Module IST will be a stable token controlled by smart contracts on the Agoric blockchain but used primarily in decentralized finance applications on external chains. In this initial launch, IST will be minted only by the Parity Stability Module (PSM) contract, which may have multiple instantiations. Each PSM is willing to trade IST for a single external stable token and vice versa. These external stable tokens are chosen by governance in the form of a vote of all BLD holders. Governance may elect to only allow one external stable token, in which case only one PSM will be instantiated. The Parity Stability Module has two primary functions: 1. wantMinted - user gives PSM the accepted external stable token; PSM mints IST and gives it to the user 2. giveMinted - user gives IST back to the PSM, which is burned; PSM returns the external stable token Once the user has received IST, he or she will transfer it to an external chain over the Inter Blockchain Communication (IBC) protocol. # Supported Assets List of IBC assets supported by Agoric Smart Wallet and the PSM The Agoric Smart Wallet and PSM currently supports 5 assets (and their respective asset denoms) as per [Governance vote #16](https://community.agoric.com/t/proposal-launch-inter-protocol-mvp-and-hardened-javascript-vm/43). These are currently all Axelar or Gravity-bridged stable tokens, namely DAI, USDC and USDT: USDC\_axl (USDC bridged from [Axelar UI](https://satellite.money/) to Agoric Chain) `ibc/295548A78785A1007F232DE286149A6FF512F180AF5657780FC89C009E2C348F` USDC\_grv (USDC bridged from [Gravity UI](https://bridge.blockscape.network/) to Agoric Chain) `ibc/6831292903487E58BF9A195FDDC8A2E626B3DF39B88F4E7F41C935CADBAF54AC` USDT\_axl (USDT bridged from [Axelar UI](https://satellite.money/) to Agoric Chain) `ibc/F2331645B9683116188EF36FC04A809C28BD36B54555E8705A37146D0182F045` USDT\_grv (USDC bridged from [Gravity UI](https://bridge.blockscape.network/) to Agoric Chain) `ibc/386D09AE31DA7C0C93091BB45D08CB7A0730B1F697CD813F06A5446DCF02EEB2` `DAI_axl` `ibc/....(TBC)` `DAI_grv` `ibc/....(TBC)` Note: This list is subject to change over time in line with governance proposals. # BLD - Agoric's Governance Token Use of the IST stabletoken may receive rewards on various external chains in the Interchain Ecosystem. Many of these rewards will be in the form of the BLD token. IST is minted by Inter Protocol, a set of contracts written in JavaScript and operating on the Agoric chain. The BLD token is the staking token for the Agoric chain which provides governance oversight of both the chain and Inter Protocol. Early users of IST are rewarded with BLD to recognize their role in bringing Inter Protocol to life. ## BLD Use Cases The BLD token is a critical asset on the Agoric chain. It has several current and possible future use cases: 1. Proof-of-Stake security for the Agoric chain 2. Governance of chain upgrades and core decisions 3. Elects the Inter Protocol Economic Committee 4. Earns fees for supporting core chain infrastructure such as Inter Protocol In the future, BLD may also be used as a primary liquidity pair and/or airdrop recipient for projects launching on the Agoric chain. ## BLD Tokenomics See the Agoric [Economy page](https://agoric.com/economy/) to better understand BLD tokenomics ## Using Your BLD Your BLD is best used vs. sitting idle in your wallet! BLD can currently be staked to earn a return in exchange for providing security to the chain, or can be provided as liquidity to earn trading fees. ### Staking BLD can be staked to Agoric validators using the Keplr wallet or several other major Cosmos wallets or block explorer front ends. See [*How To Stake or Delegate*](https://help.keplr.app/articles/how-to-stake-and-unstake) on how to stake. ### Liquidity Provision Several Cosmos decentralized exchanges such as Osmosis and Crescent have liquidity pools that include the BLD token. Holders can pair their BLD with the other token in the pool to offer liquidity to traders in exchange for a portion of trading fees. Note that liquidity provision is a complex financial position that exposes you "Impermanent Loss." Make sure you understand the risks before diving in! # Fees A summary of fees on Inter Protocol * **Chain Execution Fee** * This is the cost (charged in IST) for Inter Protocol actions (PSM and Vaults) that involve on-chain JavaScript smart contract interactions. * Users accrue a 0.02 IST (approximately) fee for each interaction but it is only charged after it reaches 0.20 IST (i.e. every 10 interactions). This means every 10 interactions, you will be charged 0.20IST. * When you first provision a smart wallet - you receive 0.25 IST which covers your first few interactions. * Insufficient IST balance to cover this charge manifests itself with the following UI error: * "Offer failed: Error: Broadcasting transaction failed with code 20 (codespace sdk). Log controller refused message admission: 0uist is smaller than 200000 uist: insufficient funds: mempool is full" * This fee is subject to BLD staker governance. * **Stability Fee** * This is the annualized cost of debt or APR on your vault-minted IST amount. It is recorded hourly and accrued/charged daily. i.e. the interest you pay on the IST debt you are taking on * This fee is subject to [Economic Committee governance](https://community.agoric.com/c/inter-protocol/econ-committee/28) and therefore subject to change (i.e. not fixed) * **Minting Fee** * Accrued every time you vault-mint IST either when you create a new vault or mint additional IST against that vault * This serves to prevent users from minting IST, using it and paying it back before any interest (stability fee) gets charged. * This fee is subject to [Economic Committee governance](https://community.agoric.com/c/inter-protocol/econ-committee/28) and therefore subject to change (i.e. not fixed) * **Liquidation Penalty** * A penalty fee, charged in collateral type of a user's underlying vault, upon liquidation of your vault (when collateralization ratio = liquidation ratio). This fee is transferred to the reserve. * This fee is subject to [Economic Committee governance](https://community.agoric.com/c/inter-protocol/econ-committee/28) and therefore subject to change (i.e. not fixed) # Frequently Asked Questions (FAQ) #### **What chain is IST on?** IST deployed on the Agoric chain. #### What wallet(s) are needed/supported by IST? [Keplr](https://www.keplr.app/download) is supported for IST in general, but to interact with Agoric contracts like the [PSM dApp](https://psm.inter.trade), the [Agoric Smart Wallet](https://docs.inter.trade/user-how-to/wallet-usage) is also required. #### Will IST be listed on exchanges? Any exchange info will be announced through the usual social channels. #### Where can I buy and/or sell IST? IST can be traded using any of the available DEX or CEX as those become available and swapped for USDC or USDT via the Inter Protocol PSM. #### How does IST maintain parity with the USD? The PSM allows for direct 1:1 trades between IST and other bridged stablecoins as allowed by governance, keeping IST in line. The Inter Protocol [Whitepaper](https://inter.trade/static/whitepaper-6106f841c1ed6c564afd2fc3238240a9.pdf) goes into full detail on this topic. #### Can I transfer IST to any chain? IST can be transferred to any Cosmos chain that has enabled the [Inter-Blockchain Community protocol (IBC)](https://ibcprotocol.org) and has relayers connected to the Agoric chain. #### How do I vote in IST governance proposals? As Inter Protocol is deployed on the Agoric chain, you will need Agoric BLD tokens to vote on IST-related governance proposals. #### What’s IST’s role in the Agoric ecosystem? IST is the native fee token for transactions on Agoric. # DISCLAIMER Last Updated: 26th April 2023 **Disclaimer:** This website may provide access and use of certain applications and services (“Applications”). 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