# Getting started with uGAS

This guide provides essential information in order to interact with the smart contracts. For additional information, please refer to the section USER GUIDES.

# How do I mint or buy uGAS tokens?

You can get a uGAS token by either creating them by depositing collateral or trading for them on a DEX like Uniswap. Both can be done via our Degenerative.Finance site.

## To Create/Mint uGAS:

Please refer to the Glossary for terms.

To mint uGas tokens you must deposit ETH as collateral on degenerative.finance/assets/ugas. A minimum of 5 uGas tokens must be minted to start a position. When minting, the maximum number of uGas tokens is determined by the Global Collateral Ratio (GCR). This provides a failsafe mechanism against undercollateralization errors for first-time users. With 1 ETH of collateral, the GCR = 4, and uGas = 0.05 ETH, with 1 ETH you can mint a maximum of 5 uGas tokens:

$1 ETH / 0.05 ETH / 4GCR = x$

Go to degenerative.finance/assets/ugas and select which uGas token you would like to trade from the drop down menu. Then click on LP/Trade to access the the links to the AMM to buy or sell that uGas token.

# How does withdrawing, depositing, redeeming & settling work?

Depositing Collateral:

Depositing collateral is used to increase a open collateral position. If your collateral ratio gets too low because ETH goes down and or uGas 2hr TWAP goes up, you can deposit additional ETH to increase your Collateral Ratio. See Glossary for definition of terms.

### Withdrawing Collateral:

For example: You deposit 10 ETH and mint 100 uGas tokens. At anytime you can redeem then withdraw your 10 ETH collateral if you pay back (using redeem function) exactly 100 uGas tokens no matter what the prices of the uGas is at the time of mint or withdraw.

If you want to withdraw less than 10 ETH from your collateral it will depend on your Collateral Ratio, Global Collateral Ratio and Minimum Collateral Ratio. See Glossary for definition of terms.

1. You can "Instant Withdraw" any ETH as long as your Collateral Ratio stays above the Global Collateral Ratio.

2. You can "Request Withdraw" if withdrawing the ETH makes your Collateral Ratio lower than the current Global Collateral Ratio. There is a 2 hour wait before the withdraw is available to ensure that you do not withdraw below the Minimum Collateral Ratio. Only use this option if you are familiar with the degenerative.finance interface and mechanism!

### Redeeming uGas Tokens:

Before expiry

If uGas contract is still active, you can only redeem WETH from your own open position. You can redeem up to the total number of uGas tokens you have minted. This will unlock and all of your WETH collateral. Then you can withdraw your collateral without risk of liquidation.

If redeeming less than total amount of uGAS tokens you minted, you must maintain at least 5 tokens and your position of 5 tokens will still be open.

After expiry

If uGas contract is expired. For example, uGasJAN tokens expires on Feb 1st. uGasFEB tokens expire on March 1st and ect. The 30-day median gas price is calculated at the time of expiry and anyone that holds uGas tokens can go to https://degenerative.finance/assets/ugas and click on the "settle" button to claim ETH for uGas tokens. For example if at expiry the 30 day median gas price is calculated to be 50gwei, each token would be worth 0.05 ETH.

### What happens at expiry, if you have deposited collateral and minted uGas tokens:

At expiry if you have a collateralized position open, the contract would calculate the value of the tokens you minted and unlock the rest of your ETH to be withdrawn. Remember that the value of the synth is akin to a debt obligation owed to the system.

For example, you deposited 10 ETH and minted 50 uGAS tokens. At expiry the index price is calculated at 0.1 ETH per token. The 50 uGAS tokens are worth 5 ETH, meaning that you "owe" 5 ETH to the platform but have collateral of 10 ETH backing this up.

Out of your 10 ETH deposit, you can immediately withdraw 5 ETH. If you still had the 50 uGAS tokens you can redeem another 5 ETH.

In case you sold or lost 1 uGAS, you would still hold 49 uGAS and be able to claim 10 ETH - 0.1ETH = 9.9 ETH at expiry.

### What happens at expiry, if you have bought uGAS tokens on Uniswap:

After expiry, you can settle the token on degenerative.finance and obtain the underlying collateral equal to uGAS price (at expiry)*number of uGAS held

# So why deposit collateral and mint tokens?

1. Liquidity mining rewards. If you mint and stake you are eligible to receive UMA rewards.

2. You can take a short position. You can sell the uGas tokens after you mint them effectively putting you in a short position because those tokens would need to be purchased later to redeem your collateral. It can also be left till expiry, which at that point you can withdraw your collateral less the value of the tokens you sold (at 30-day median gas price).

3. Potential earnings from Uniswap Market Maker fees.