Minting and burning of iAUSD

When a user stakes SOL in Goldsand, the protocol automatically mints iASOL tokens representing their staked SOL. iASOL is a standard, non-rebasing LST whose price increases over time (relative to SOL) as staking yield accumulates.

iASOL holders can opt to mint iAUSD without fees. To do so, they deposit their iASOL into the InshAllah Borrow protocol and mint iAUSD based on a predetermined collateralization ratio. The minted iAUSD receives a portion of the staking yield, ensuring users retain full benefit of the staking rewards. InshAllah charges no fees or takes any portion of the yield, making the lending process entirely halal.

Example

Ali deposits 100 SOL into Goldsand staking and receives 98.62 iASOL tokens (assuming 1 iASOL = 1.014 SOL). Ali then deposits the the iASOL into InshAllah Lending. With SOL priced at $100, Ali’s collateral is worth $10,000 USD.

Assuming a 200% over-collateralization ratio, Ali can mint 5,000 iAUSD.

Ali pays zero fees and zero interest to mint iAUSD. Moreover, all staking yield from the iASOL continues to benefit Ali, distributed between the iASOL collateral and the minted iA

When the user wants to pay back their loan, the returned iAUSD is burned. When all the borrowed iAUSD is paid and the user can collect back their iASOL collateral.