xof collateral (
xis the margin) and decides to take on the volatility of an amount
yof the same collateral (
yis the amount committed, or the position size) that was brought by users minting stablecoins, then the contract stores
y, the oracle value and the timestamp at which this HA came in.
x, plus or minus the capital gains or losses of the amount
ythey decided to back.
in stablecoin valueneeded by the Core module to pay back users in case they all want to burn their stablecoins. For example, if some users bring 1 wETH to mint 2000 agEUR, and others burn 1000 agEUR, the amount to hedge is 1000 EUR of wETH. HAs can hedge a fraction of this quantity (close to 100%): this is called the target hedge amount.