The core mechanism
Tabs are minted by depositing Bitcoin reserves into vaults through smart contracts in the Tab Protocol. Users can manage this process via ShiftCTRL’s native user interface, QWERTY.
Minting Tabs
Create a vault: Users start by creating a vault to deposit their Bitcoin reserves. These vaults are non-custodial, meaning users have full control over their reserves as long as they meet the required reserve ratio.
Deposit reserves: After creating a vault, users specify and deposit the amount of Bitcoin they want to use as reserves.
Mint Tabs: With the reserves in place, users can mint Tabs up to the Minimum Reserve Ratio.
For instance, if you have 2 Bitcoins in your vault, and each Bitcoin is worth 60,000 ⓢUSD, and the MRR is 180%, you can mint up to 66,666.66 ⓢUSD (calculated as 2*60,000/1.8).
Withdrawing reserves
Vault owners can withdraw their Bitcoin reserves at any time by burning the corresponding amount of Tabs, as long as the reserve requirements are met.
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