Vaults

A Vault is a dedicated smart contract used to issue and manage $taoUSD loans.

TrustedStake supports $wTAO-collateralized Vaults, allowing users to unlock liquidity from their $wTAO holdings.

Each Vault maintains two key balances:

• Collateral Balance: The amount of $wTAO deposited

• Debt Balance: The amount of $taoUSD minted

Users can add collateral or repay debt at any time. These actions directly affect the Vault’s health factor, which determines its liquidation risk.

Vaults can be closed at any time by fully repaying the outstanding $taoUSD debt.