FAQ

This is a working draft of the SPOT FAQ. Some of the most commonly asked questions the community has encountered can be found here.

What is SPOT?

Why do we need SPOT?

What makes SPOT different?

How is Collateral Prepared and Rotated in the SPOT system?

Why Does SPOT's Price Tend Towards the CPI-Adjusted Dollar?

How Does Tranching Work?

How Are Tranche Ratios and Tranche Maturity Duration Determined?

What Are The Incentives For Rolling Over?

What Happens If Rollovers Stop?

What Happens If Users Rush to Withdraw and Sell Collateral?

How Does the System Resume After Unwinding?