3.3 MOR Vaults

There are two ways users can mint MOR:
1.Through the Peg-Stability Module, minting MOR with BUSD at a fixed rate.
2.Creating a MOR Vault and depositing collateral into it.
There are a few key parameters to each vault that you need to get familiar with and they are specific to each collateral:
Note: the definition of “ilk” is a collateral type (part of Maker’s Glossary).
Debt Ceiling
This is the maximum amount of MOR that can be minted by all users with an ilk. This parameter allows the protocol to limit the desired maximum exposure to an ilk. Having too much concentration in a single ilk can be risky due to concentration.
Stability Fee
The stability fee is paid continuously on the outstanding MOR debt balance of the user; it can only be changed by the Growth DeFi DAO through executive governance votes. How high or low the stability fee is depends on several factors including:
A. Market conditions 
This is due to fluctuations in demand for leverage: bull markets have higher stability fees, whereas bear markets have lower stability fees.
B. Ilk type 
Riskier collaterals are likely to have higher stability fees.
C. Minimum Collateralization Ratio/Liquidation Ratio 
Lower minimum collateralization ratios are inherently riskier and are likely to have higher stability fees. This stability fee difference would apply if there are two vaults with the same ilk but different minimum collateralization ratios.
D. Yield
Most ilks are stkTokens which earn yield through protocols like ApeSwap and PancakeSwap. The higher the yield of an ilk, the higher stability fee the user is willing to pay.
The best example of how yield affects the stability fee is with stablecoin ilks such as stkBUSD/USDC PCS LP tokens:
If the yield on this ilk is 8% APY, then the user would be willing to pay a 6% stability fee since they are keeping a 2% yield spread (which is the difference between the yield and the stability fee), and these yield spreads are maximized with leverage.
Minimum Collateralization Ratio/Liquidation Ratio
This is the minimum collateral percentage a user must maintain in their vault to avoid liquidation. Users should consider always opening vaults at a much higher collateralization ratio than this parameter just to be safe. For example:
If the minimum collateralization ratio is 150%, it would be safest to start with a collateralization ratio higher than 200%.
MOR is designed to reward those who can use conservative leverage to increase their yield while avoiding liquidations, even in black swan events.
Liquidation Penalty
A penalty is applied to successful liquidations, this penalty increases the system surplus and acts as safety reserves in the event that a liquidation fails and a position becomes undercollateralized.
The liquidation penalty can vary based on the under-collateralization risk of a collateral.
Yield
Though this is not a parameter of MOR vaults, most ilks are stkTokens which do have a yield, and users can benefit and capture all of the yield APY. Here are a few examples on supported ilks and where they get their yield:
stkBANANA (BANANA compounding)
stkCAKE (CAKE compounding)
stkMOR/BUSD ApeSwap LP Token (BANANA + Swap Fees)
stkBNB/BUSD PCS LP Token (CAKE + Swap Fees)
stkBTCB/BUSD PCS LP Token (CAKE + Swap Fees)
stkBUSD/USDC PCS LP Token (CAKE + Swap Fees)
The true edge with MOR comes from combining low stability fees (compared to money market protocols), yield on ilks, and conservative leverage to avoid liquidations.
When a user creates a new vault, they can input how much collateral they want to provide and how much MOR to initially mint. Once they have created the vault, they can manage it from their personal dashboard. Users are able to watch the evolution of their collateral and debt, and manage minting more MOR, repaying their MOR debt partially or completely, and depositing/withdrawing collateral as long as they meet the minimum collateralization ratio criteria.

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3.2 Peg-Stability Module(PSM)

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3.4 System Surplus Buffer

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