Selenized Assets Lifecycle

Whitelisting

The process of whitelist a Selenized Asset is to register it with Selenium Protocol, which involves several operations, including:

• creating the Selenized Asset token and assigning its oracle

• creating the SelenizedAsset-USTC trading pair on Terraport and its LP token

• registering the new Selenized Asset with all relevant Selenium Contracts

Whitelisting is approved by governance and is automatically implemented if the whitelisting proposal receives enough votes. Once a Selenized Asset has been whitelisted, it will be mintable through opening a CDP and tradeable on Terraport. In addition, LP tokens for the corresponding Terraport pool will begin to earn Selenium inflation rewards when staked.

Delisting and Migration

In situations where the tracked asset undergoes a corporate event such as a stock split, merger, bankruptcy, etc. and becomes difficult to reflect properly due to inconsistencies, a Selenized Asset can be delisted, or discontinued, with the following migration procedure initiated by the oracle:

1. New replacement Selenized Asset token, Terraport pair, and LP tokens contracts are created, and the present values of properties of Selenized Asset will be transferred over

2. The oracle feeder sets the end_price for the sAsset to the latest valid price

3. The Selenized Asset's min. collateral ratio is set to 100%

At this stage:

• CDPs may no longer mint new tokens of the Selenized Asset

• Liquidation auctions are disabled for the Selenized Asset

• Burns will take effect at the fixed end_price for withdrawing collateral from any existing mint position.

• LP tokens for the sAsset will stop counting for staking rewards

Delisting will not directly affect the functionality of the Selenized Asset's Terraport pool and users will still be able to make trades against it, although price is likely to be very unstable. Users are urged to burn the Selenized Asset to recover collateral from any open positions on Selenium Protocol, including their own.

Since anyone can burn against any open position, CDP holders may end up having no or less amount of "borrowed assets" within their position, but they will still be able to withdraw the remaining amount of collateral by only burning the remaining amount of delisted Selenized Asset. Opening a new CDP / engaging in liquidity provision can be done with the new, replacement Selenized Asset.

The old Selenized Asset will be retired and marked as delisted only allowing burn, close CDP, withdraw collateral and liquidity, and unstake LP transactions on front-end interfaces.