Thank you for the questions.
The yellow paper goes into deeper mathematical detail than does the whitepaper, so that’s worth taking a look at if you haven’t already.
- pc is the price of the collateral asset
- pm is the price of the minted asset
- am is the total minted amount of the CDP (collaterized debt position)
- ac is the locked collateral amount of the CDP
The over-collaterization ratio by default is 150%. However this variable can be set per iAsset and is configurable via governance. So for a particularly volatile iAsset this value could be set higher in order to reduce liquidations.
anetaBTC is a great project that I’m very excited about for the Cardano ecosystem. anetaBTC is creating a different type of asset than the synthetic assets Indigo creates. anetaBTC locks up real BTC and then creates an asset on the Cardano blockchain. This is a real represetation of the BTC. If you’re familiar with Ren for the Ethereum blockchain then it’s like that, but for Cardano (slighlty different in implementation but comparable).
Indigo’s iBTC will be different than anetaBTC in that it’s not a real representation but merely an asset that mimics the price action of BTC. Owning iBTC will not be equivalent to owning BTC, whereas anetaBTC will be. The two have different use cases and many may actually prefer to use anetaBTC over iBTC because in many cases owning a real asset is preferable over owning a synthetic asset.
anetaBTC is made possible because BTC is a crypto asset. Indigo can create synthetics of crypto assets but its real power and appeal comes from creating synthetics of real-world assets in a completely decentralized manner. This isn’t possible using anetaBTC.
Let me know if this clears up your questions or if you have any more doubts.