Dopple DeFi Ecosystem
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# Collateral Ratio

The Collateral Ratio is the ratio in which the stablecoins and utility tokens are required to create the fractional-algorithmic stablecoin. For KUSD, it is the ratio between USDC and DOPX. A collateral ratio of 100% means that the user needs 100% worth of USDC and 0% worth of DOPX to mint KUSD, while a collateral ratio of 60% means that the user needs 60% worth of USDC and 40% of DOPX to create KUSD.
Example of KUSD at Collateral Ratio of 60% (Backed by USDC 60% and DOPX 40%)
The general formula of calculating the proportion of KUSD is from this equation:
$KUSD=P_{USDC}\times USDC + P_{DOPX}\times DOPX$
$(1-C_r)( P_{USDC}\times USDC)= C_r(P_{DOPX}\times DOPX)$