E. Pricing Principles of On-chain Assets

If the target asset is a digital asset on the BSC chain, it is easier to create an oracle for it. There are many reasonable methods for building an imprecise relative price oracle for Mor. One possibility is using BNBv2's TWAP accumulators as the price oracle.

Another possibility is to use on-chain exchanges, tracking the time length of specific open quotes. Long-term offers to trade the target asset for the collateral asset can be used to infer a lower bound on the target asset's price, and thus can be used to liquidate vaults.

Some optimizations can reduce the number of calls to Mortonn (although they might require setting higher collateral requirements to maintain the same level of security). To outline some of them:

When a vault is liquidated, the liquidator can pay the price instead of paying the margin. Then, the vault owner can call Mortonn and prove the vault is fully collateralized, canceling the liquidation and claiming the margin. If the liquidation is not canceled within 24 hours, the liquidation ends.

When creating Mor minting, the creator can call the price or choose one of the following options:

Pay the same or lower liquidation price at the same price but not in the liquidation process. The existence of such a vault means the liquidation price has not yet been reached.

Start extracting new financial Mor and then wait for 24 hours. During the waiting period, anyone can initiate an under-collateralized (based on collateral after extraction) amount. Once the waiting period ends, if no liquidation has occurred, the extraction is complete.

The yield curve can be used to inform governance for protocols like Maker and Compound, as well as provide potentially useful economic information for traders and analysts.