Welcome to our comprehensive tutorial on how to collateralize stATOM and stOSMO on Kujira’s Blue. As the world of decentralized finance continues to expand, more and more innovative platforms are emerging to help users harness the full potential of their LSTs. One such platform is Kujira, which provides a range of financial services and tools for the ever-growing DeFi ecosystem. In this guide, we will take you through the step-by-step process of using stATOM and stOSMO to collateralize USK on Kujira’s Blue platform. To follow this tutorial, you will need to have either stATOM or stOSMO in your Keplr wallet.

2. Click the Connect Wallet button and choose Keplr.

3. Select IBC / Bridge link on the left-hand side.

4. Select Stride in the first box, Kujira in the second box. Select either stATOM or stOSMO and then enter the amount you want to send.

5. Then click the Initiate IBC Transfer button to start the transfer.

On completion of the transfer, you will now have successfully bridged Stride LSTs to Kujira.

1. Click the link for Mint on the left-hand side bar.

2. Select Option Position underneath stATOM or stOSMO.

3. Enter the amount of stATOM or stOSMO you want to collateralize in the Deposit box, and the amount of USK you want to mint in the Mint box.

Keep in mind that you can only borrow up to 60% of your collateral’s value; therefore, carefully consider this limitation when making decisions. Opting for a lower Loan-to-Value (LTV) ratio is generally safer, as it provides better protection against market fluctuations. By maintaining a lower LTV, you minimize the risk of liquidation during market downturns, ensuring the security of your assets.

4. Click the Open Position button an approve the transaction.

On completion of the transfer, you will now have successfully minted USK using stATOM or stOSMO as collateral.

Once you’ve opened a position, you’ll notice a prominent red message titled “Danger Zone” displayed beneath your active position. This red box offers a “self-liquidate” option for use in emergency situations. The self-liquidate function comes in handy when you lack the funds to purchase USK, repay the loan, withdraw collateral, and sell it at the current market rate.

It’s crucial to note that the self-liquidate option should NOT be used for closing positions. Instead, it serves as a last resort when a position has been mismanaged, and you’re unable to safely or quickly pay down the loan. Keep in mind that using this method to close a position results in a penalty incurred for selling through Kujira’s Orca.

To lower your LTV (Loan-to-Value) ratio, you can choose from two options:

To repay the loan, refer to the “Mint” tab, where you’ll find the required amount under “USK Borrowed.” To close the position, simply click on “Close Position” and confirm the transaction in the Keplr popup. This action will burn the USK you previously minted and return the deposited collateral to your Kujira address.

By following this tutorial, you have taken an important step toward maximizing the potential of your LSTs in the DeFi space. To keep track of your position and monitor its status, make sure to visit Kujira’s Mint dashboard regularly. As you explore the world of DeFi further, remember to always do thorough research and consider the risks associated with each platform and investment opportunity. With due diligence and a solid understanding of the tools and services available, you can make informed decisions and harness the full potential of decentralized finance.