[Informative]Step-by-step guide on How to Borrow or mint the FXD Tokens

Introduction

FXD is a stablecoin built on the XDC Network, developed and issued by Fathom.fi DAO, a decentralized autonomous organization. It is a stable-priced cryptocurrency, with its value softly pegged to the U.S. dollar. FXD is backed by over-collateralized XDC tokens, which are securely held in smart-contract vaults during the minting process of new FXD tokens.

One of the key objectives of FXD is to bridge the trade finance gap by providing direct access to alternative investors for micro, small, and medium-sized enterprises (MSMEs). Through platforms such as portal.tradefinex.org and fathom.FXD leverages the fast, scalable, and secure infrastructure of the XDC Network. It offers MSMEs stable financing options that are more accessible and cost-effective, enabling them to obtain the necessary capital for business growth. This initiative significantly fosters economic expansion and job creation and empowers MSMEs to flourish globally.

Certainly! Here’s a step-by-step guide on how to mint your FXD tokens:

Before begning with the step you will have to white list your address to get your address whitelisted please fill out the form https://docs.google.com/forms/d/e/1FAIpQLSdyQkwpYPAAUc5llJxk09ymMdjSSSjjiY3spwvRvCwfV08h2A/viewform

Step 1 Access Fathom.fi Website Visit the official Fathom fi website at https://fathom.fi.

Step 2: Launch the Application. Click on the “Launch App” button to access the application.

Step 3 Connect Your Wallet

Once the application is launched, connect it to your preferred wallet. You can connect using XDCPay, Metamask, or any other XDC Network wallet that supports wallet connect.

Step 4 Explore Available Information

Upon connecting your wallet, you’ll see important information like the total value locked (TVL) of issued FXD tokens and the current price of FXD.

Step 5: Access the Borrowing Section

To borrow or mint FXD tokens, navigate to the borrowing section of the application. This section allows you to interact with the protocol and create a new position.

Step 6: Choose the Amount to Borrow

Specify the amount of FXD tokens you wish to borrow. Remember that the amount of FXD you can borrow is determined by the collateral you provide in the form of XDC tokens. Make sure not to borrow more than you can safely collateralize to avoid liquidation risks.

Step 7: Confirm Borrowing Transaction

Once you have entered the desired amount of FXD tokens to borrow and reviewed the transaction details, confirm the borrowing transaction through your connected wallet. Be sure to check the gas fees and confirm the transaction.

Step 8: Collateralize XDC Tokens

As a part of the borrowing process, you will need to collateralize XDC tokens to secure the FXD tokens you are borrowing. The XDC tokens will be held in a smart contract vault during minting.

Step 9: Borrow FXD Tokens

After successfully collateralizing your XDC tokens, the smart contract will mint and send the requested amount of FXD tokens to your wallet.

Step 10: Monitor Your Position

Once you have minted the FXD tokens, you can monitor your position through the Fathom.fi application or your connected wallet. Ensure that you keep track of the FXD token’s value, the collateralization ratio, and any changes in market conditions.

Remember, borrowing or minting FXD tokens involves risk, and it’s essential to clearly understand the process, the risks involved, and how to manage your positions effectively.

Please note that this guide is for informational purposes only and should not be considered financial advice. Always do your own research and consider your risk tolerance before participating in any financial activity.

If you have any questions or need further assistance, post on the XDC Network forum at https://xdc.dev