Assets & Specification
Listed Assets
| Asset | Collateral factor | Borrowing factor | Liquidation incentive |
|---|---|---|---|
UST | 90% | 95% | 5% |
aUST | 90% | 95% | 6% |
LUNA | 80% | 85% | 5% |
LunaX | 75% | 75% | 7.5% |
bLUNA | 80% | 75% | 7.5% |
MIR | 70% | 75% | 8.5% |
ANC | 70% | 75% | 8% |
stLUNA | 75% | 75% | 7.5% |
pLUNA | 0% | 60% | - |
Safe and less volatile assets will have a corresponding high collateral and borrowing factor.
See more info on parameters and glossary
Borrowing and Lending rate of each asset
Borrowing rate = Interest rate model of that asset.
Lending rate = Borrowing rate * (1 - IF fee) * that asset's utilization rate.
Insurance fund fee (IF fee)
In Genesis Pool, we collect IF fee from the gap between lending and borrowing rate. We collect insurance fund fee into our insurance fund to be used for repaying lenders in case there is underwater liquidation debt. We currently set IF fee to be 10%.
That's means Edge Protocol is collecting 10% of the gap between borrowing and lending interest rate means that the lending rate is now defined as = borrowing rate * utilization rate *0.9 since another 10% goes to the insurance fund.
ELI5: the users don't pay any fee (besides gas fee) interacting with us, it's just that the existence of insurance fee makes the lending rate not simply "borrowing rate * utilization rate"
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