# Mechanism

AkadDao Sample Mechanism

Let's assume that Ali wants to mint Rupya stablecoins using her AKAD tokens as collateral.

* Ali has 10 AKAD tokens, each pegged to 1 troy ounce of gold.
* The current gold price is IDR 25,000,000 per troy ounce, making his total collateral worth IDR 250,000,000.
* The AkadDao product requires a minimum collateralization ratio of 150% for minting Rupya tokens. Ali can mint a maximum of IDR 166,666,666 worth of Rupya tokens (IDR 250,000,000 / 1.5).
* Ali decides to mint IDR 150,000,000 worth of Rupya tokens, keeping his collateralization ratio at 166.67%.
* He locks his 10 AKAD tokens in a smart contract vault within the AkadDao product and receives 150,000,000 Rupya tokens.
  * Ali can now use his Rupya tokens to invest in Shariah-compliant projects and investments available on the akad.finance platform.
  * As the projects generate profits, the returns are shared between Ali and the platform according to the profit-sharing model.
  * If Ali wishes to unlock his collateral (AKAD tokens), he will need to repay the Rupya tokens he minted, along with his share of the accrued profits.
  * Once he repays the required amount, his AKAD tokens are unlocked and returned to him.
* Conclusion

AkadDao, as a product within the akad.finance platform, presents a unique approach to DeFi by combining blockchain technology with the principles of Islamic finance. By focusing on ethical practices, transparent governance, and Shariah-compliant profit-sharing models, AkadDao aims to create a thriving ecosystem that caters to users seeking a financial platform that aligns with their values.

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