An nAsset Minter will be able to mint tokenized stocks by opening a collateralized debt position (CDP). At launch NASDEX will accept collateralization in $USDC at a minimum of 150% collateralization ratio, with 200% collaterization being the recommended safer option. Asset minters will be required to monitor and adjust their collateralization ratio accordingly. As price of the tokenized stock increases, users will need to top up their collateral in order to prevent their position from being liquidated. Inversely, if the price of the tokenized stock decreases, users will be allowed to withdraw a percentage of their collateral. Moving forward NASDEX will whitelist other large cap assets and yield bearing assets to be used as collateral. This will allow users to maximise their capital efficiency.
During non-trading hours of the stock exchange, the minting of the respective nAssets on NASDEX will be suspended. The auction liquidation function will be suspended for that nAsset too.