To celebrate the Lunar New Year, Alchemint is hosting an airdrop campaign entitled the “SDUSD Red Envelope.” To be eligible for the airdrop, participants will need to collateralize NEO to issue SDUSD on the Alchemint Stablecoin Issuance Platform.
Alchemint’s smart contract for issuing stable coins is termed the Smart Assets Reserve (SAR). SAR smart contracts will allow Alchemint to offer stable coins by the mortgaging of digital assets on the NEO blockchain through its SAR-C module. To brush up on SAR’s and collateral, please refer to previous NEO News Today coverage.
A snapshot of a random block height will take place at a random time between Tuesday, February 5th and Thursday, February 7th. The snapshot will include a record of how much SDUSD has been issued by each SAR.
Alchemint will distribute the SDUSD Red Envelope to addresses recorded in the snapshot no later than Wednesday, February 13th. Alchemint did not state the size of a rewards pool, nor the amount of SDUSD each participant will be airdropped.
How to issue and return SDUSD
Included in the announcement was a 5-minute video that describes how users can issue and return SDUSD. The video begins by demonstrating the process of creating a new wallet. Once NEO is in the Alchemint wallet, users will then need to select the “Individuals” tab at the top of the website, then find and click the “Create SAR” button once the page has loaded.
As every action made in the Alchemint system is considered a transaction, the user will need to wait until the next block after beginning the SAR creation process. Once the SAR is created, users must convert NEO to SNEO at a 1:1 ratio. Once converted, they can select the “Add SNEO” button to add collateral to the SAR.
The participant will then need to select “Issue SDUSD,” and adjust the mortgage rate with a 150% minimum amount. The higher the mortgage rate, the safer the SAR will be.
Once the mortgage rate is determined and the SAR created, the SDUSD issuance process is complete and the user will be able to see their newly issued SDUSD in the wallet.
SDUSD can then be sent to another wallet.
To return the SDUSD for NEO, users will need to return to the “Individuals” tab at the top of the main page.
Interest on the issued SDUSD will need to be paid before the underlying NEO asset is returned to the SAR. The interest rate will be automatically calculated by an oracle mechanism and must be paid in the native SDS token. This means SDS will need to be added to the SAR in order for the user to pay interest.
Once SDS has been added to the SAR, the user can select the “Return SDUSD” button to return all or a portion of the SDUSD. SNEO will be returned to the user’s wallet, and they’ll be able to convert the SNEO to NEO.
The user will need to wait for two consecutive blocks to confirm the SNEO to NEO transaction. If the user refreshes the page during the conversion, it might fail. Should this happen, they can simply press the “Continue Conversion” button, and the process will continue.
The tutorial video can be found at the link below: