Troves
A Trove is a borrower position. It stores ownership, collateral, debt, selected interest rate, solvency snapshots, liquidation accounting snapshots, and optional delegate permissions.
Trove State
| Field | Purpose |
|---|---|
| Owner address | The account that controls the position. |
| Collateral | XLM deposited into the protocol at launch. |
| Debt | Outstanding starUSD debt, including accrued interest when applied. |
| Annual interest rate | Borrower-selected fixed rate. |
| Accounting snapshots | Solvency, liquidation, and redistribution state. |
| Delegate permissions | Optional authority for a rate manager. |
Opening
Opening a Trove locks collateral and creates starUSD debt. BorrowerOperations checks the oracle price, minimum debt, debt cap, branch status, collateral ratio, receiver, trustline, interest rate, and sorted-index hints before any minting occurs.
If the operation is valid, XLM moves into ActivePool, TroveManager records the Trove, and SortedTroves places the Trove in redemption order by interest rate.
Adjusting
Borrowers or approved managers can adjust positions by:
- Adding collateral.
- Repaying debt.
- Withdrawing collateral.
- Minting additional debt.
- Adjusting the interest rate.
Every adjustment must preserve protocol constraints, including collateral ratio, minimum debt, debt cap, branch status, receiver rules, authorization, and sorted-index consistency.
Closing
To close a Trove, the borrower repays the full debt including accrued interest. The protocol then releases the remaining collateral and reserve.
Delegated Rate Management
Borrowers may delegate interest-rate management to a professional manager. Delegation is scoped to the authorized action. A rate delegate can manage the borrower's rate but cannot redirect collateral or minted starUSD to another address.
Borrower Tradeoff
Lower rates reduce interest cost but make the Trove more likely to be redeemed. Higher rates cost more but reduce redemption exposure. This lets borrowers compete for the lowest rate they can tolerate while keeping starUSD peg pressure visible through redemption risk.