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Minting Process Flow

This document describes minting and redeeming ha (pegged) and hs (Sail / leveraged) tokens via the market minter.

Live minters are Minter_v2. Numeric examples below are illustrative only. For integration, use *DryRun views — Mint and redeem. Function SoT: Minter.

Quote first. Guard with minOut. Then submit.

Overview​

TokenRole
Pegged (ha)Anchored claim on the market peg
Leveraged (hs / Sail)Residual NAV of collateral vs ha

Users deposit wrapped collateral (e.g. fxSAVE, wstETH). Prefer that path over zaps when you already hold wrapped collateral — Zaps.

Mint (public API)​

Signatures (Minter_v2):

mintPeggedToken(uint256 wrappedCollateralIn, address receiver, uint256 minPeggedOut);
mintLeveragedToken(uint256 wrappedCollateralIn, address receiver, uint256 minLeveragedOut);

Step-by-step​

  1. Approve wrapped collateral to the minter (or use a zap / permit path).
  2. Quote with mintPeggedTokenDryRun / mintLeveragedTokenDryRun.
    • If incentive ratio is 1e18 or taken/out amount is 0, the action is disallowed at the current CR — do not send the tx.
    • Near band edges, taken may be less than wrappedCollateralIn (partial fill).
  3. Set minOut from the dry-run with your slippage buffer.
  4. Execute mintPeggedToken / mintLeveragedToken.
  5. Protocol fees (when the incentive ratio is a fee) go to feeReceiver.
  6. Discounts (when the ratio is negative) are funded via ReservePool.requestBonus when the reserve has balance — not “reserve allocation on mint.”

There is no public burnPeggedToken / burnLeveragedToken. Exit with redeem (below).

Illustrative ha mint (not a quote)​

User holds 10 wrapped collateral units
↓
mintPeggedTokenDryRun(10e18) → incentiveRatio, wrappedFee, taken, peggedMinted, price, rate
↓
If allowed: mintPeggedToken(10e18, receiver, minPeggedOut)
↓
ha minted to receiver; fee (if any) → feeReceiver

Redeem (public API)​

redeemPeggedToken(uint256 peggedIn, address receiver, uint256 minWrappedCollateralOut);
redeemLeveragedToken(uint256 leveragedIn, address receiver, uint256 minWrappedCollateralOut);
  1. Quote with the matching *DryRun.
  2. Burn path is internal to the minter (Burn1Arg / Burn2Arg / BurnFrom per market). Approve ha/hs to the minter only if the burn signature requires it.
  3. Wrapped collateral returns to receiver (subject to fees/discounts and CR bands).

Restricted paths​

freeMint* / freeRedeem* require ZERO_FEE_ROLE (stability pool manager / protocol). External integrators use the public mint* / redeem* functions.