Tutorial: How To Create a Vault, Deposit your Digital Assets and Mint PAR tokens by using the Parallel Protocol
The Parallel Protocol was designed to allow users to use digital assets — such as ETH or wBTC — as collateral in a Vault, in order to mint PAR tokens. Each PAR token is algorithmically pegged to the value of 1 EUR.
In this tutorial, you will learn how to create a Vault, deposit ETH into the Vault as collateral, and mint PAR tokens backed by the collateralized digital assets in your Vault.
Step 1: Open your browser and go to the following link: https://mimo.capital.
After the Dashboard appears, please connect your wallet by clicking on the ‘Connect Wallet’ button located at the top right corner of the page.
Step 2: Please select an Ethereum wallet to connect. For this tutorial, we will be using Metamask.
Step 3: After successfully connecting your wallet, please click on the MINT PAR tab at the upper left side of the DASHBOARD.
Step 4: Once you enter the MINT PAR tab, please select the digital asset you would like to create a VAULT for, in order to collateralize your digital assets. In this tutorial, we will be creating an ETH Vault.
Step 5: Now proceed to deposit ETH as collateral in your new Vault. For this tutorial, we will use an amount of 0.5 ETH, which will give us the possibility to mint 636.22 PAR tokens.
You can check the Liquidation Ratio, Liquidation Price and Current Price of the asset you are depositing in your new Vault.
Now proceed and click on ‘Create ETH Vault and Mint’.
Step 6: The message “Transaction initiated” will now show up. Please wait a few moments until your new Vault is created.
Step 7: Congratulations! You’ve now successfully created an ETH Vault, deposited ETH as collateral, and minted PAR tokens.
On the section ‘Your Vaults’ on the lower part of the MINT PAR tab, you can check the amount of PAR minted, the amount of assets you have as collateral, the euro market price of the digital asset you’ve collateralized, it’s liquidation price and collateralization ratio of your new Vault.
Step 8: If you would like to check additional information on your Vaults, please click on the Vault you would like to access. For this example, we will use the Vault we’ve just created.
Step 9: You have now accessed your ETH vault. In this section, you can withdraw or deposit collateral, return or mint PAR tokens and check the general status of your Vault.
Pro tip: We recommend that you keep your collateralization ratio over 150%, in order to lower the risk of liquidation of your collateralized assets. Please consider in case your collateralization ratio drops below 100%, your Vault will be liquidated.