Stablecoin Life Cycle

Creation

USDO is created via the minter contract however it does not enter circulation until it is minted against collateral. Tokens are created via the following BSC contracts:
The creation will be controlled via the DAO, new USDO will be created via proposals passed via a vote. However, the newly created USDO does not enter circulation. It can only be supplied to the Minter/Borrower contracts from OPEN protocol.
A typical proposal would be along the lines of:
Create X USDO and supply it to the ABC token as collateral lending market so that it can be borrowed by ABC token holders.

Minting

The newly created USDO goes to ABC - USDO lending market as per the proposal once passed. At this stage it is uncollateralized and yet to enter circulation in the true sense.
Anyone may borrow USDO by supplying their ABC tokens as collateral. The lending markets are isolated and comprise only 2 tokens. The ABC token used as collateral and USDO which can be borrowed. More details of this can be found in the OPEN protocol section.
Once the USDO is borrowed for the first time, it officially enters circulation and can be used for any purpose. More details on USDO applications can be found in the use cases section.
Given that USDO is now borrowed against some collateral, it is now overcollateralized.

Borrowing

Anyone may create a token - USDO lending market using the USDO lending factory.
However though anyone can setup a lending pair it does not mean that they can automatically borrow USDO against their token. The USDO that can be borrowed must to be lent by someone else who has USDO. This effectively means that it is a market driven permissionless process and is described in detail in the protocol section.
Proposals may be presented to the DAO to seed the lending market with newly created USDO.
If such a proposal is passed, the newly created USDO becomes available for borrowing against that token.
However even if such a proposal does not pass, others who already have USDO can lend their USDO to this market making it into a permissionless process. These lenders would have acquired the USDO either from the market or via minting/borrowing against other assets.
Minting and Borrowing are technically similar processes. We use minting to describe the process when newly created USDO is borrowed for the first time to denote that it is now officially entering circulation.
In case of borrowing the USDO that is being borrowed was minted by someone else beforehand rather than being seeded freshly by the DAO.
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