PUC vs POC

(Discount Rate)

Protocol's Under-Collateralization or PUC and protocol's Over-Collateralization or POC are, respectively, a measure of protocol's debt and protocol's credit.

PUC: Measure, in $ terms, of the protocol's debt or liabilities, acquired through the Seigniorage, equity backed, minting process. POC: Measure, in $ terms, of the oversupply of collateral present in the Money Market and preventing Collateralized Debt Positions (CDPs) from being liquidated. ePOC (exercisable protocol's Over-Collateralization): Measure, in $ terms, of the total amount of protocol's credit present in the form of collateral in the Money Market and exercisable through the use of Interest Rates (IRs) and Liquidations during a Contraction phase.

ePOC (Credit) must always be >= PUC (Debt)