LoopStake Lending Parameters
All parameters listed on this page are based on parameters set in the formal environment. Therefore, when the parameters are adjusted online, this document will also be adjusted synchronously.
Glossary
| collateralFactor | The maximum proportion of the collateral’s value that can be borrowed. |
|---|---|
liquidationThreshold | The ratio of the loan amount to the value of the collateral, beyond which the collateral is considered insufficient to cover the loan, triggering a liquidation event. |
reserveFactor | The percentage of interest paid by borrowers. |
closeFactor | The maximum percentage of a borrower's total debt that can be repaid or "closed out" by a liquidator in a single liquidation event. |
rateModel | The algorithm used to determine the interest rates. |
baseRate | The minimum rate charged to borrowers. |
jumpRate | When the utilization of a fund surpasses a certain threshold, significantly increasing the borrowing cost to manage liquidity. |
fullRate | The maximum rate that can be charged to borrowers. |
jumpUtilization | The interest rate jumps from the base rate to a significantly higher jump rate to manage liquidity and demand. |
The Rate Curve of Lend Markets
When the utilization rate of the corresponding token in each lending market reaches 90%, the jump rate will be triggered, and the loan interest will significantly increase.
Currently, all Lend Markets of Bifrost are configured to the following curve:
Bifrost Polkadot
DOT
| collateralFactor | 60% |
|---|---|
liquidationThreshold | 70% |
reserveFactor | 3% |
closeFactor | 50% |
Rate Curve
| rateModel | Jump |
|---|---|
baseRate | 0 |
jumpRate | 180,000,000,000,000,000 |
fullRate | 500,000,000,000,000,000 |
jumpUtilization | 90% |
vDOT
| collateralFactor | 80% |
|---|---|
liquidationThreshold | 90% |
reserveFactor | 3% |
closeFactor | 50% |
Rate Curve
| rateModel | Jump |
|---|---|
baseRate | 0 |
jumpRate | 180,000,000,000,000,000 |
fullRate | 500,000,000,000,000,000 |
jumpUtilization | 90% |
Bifrost Kusama
KSM
| collateralFactor | 60% |
|---|---|
liquidationThreshold | 70% |
reserveFactor | 3% |
closeFactor | 50% |
Rate Curve
| rateModel | Jump |
|---|---|
baseRate | 0 |
jumpRate | 180,000,000,000,000,000 |
fullRate | 500,000,000,000,000,000 |
jumpUtilization | 90% |
vKSM
| collateralFactor | 80% |
|---|---|
liquidationThreshold | 90% |
reserveFactor | 3% |
closeFactor | 50% |
Rate Curve
| rateModel | Jump |
|---|---|
baseRate | 0 |
jumpRate | 180,000,000,000,000,000 |
fullRate | 500,000,000,000,000,000 |
jumpUtilization | 90% |
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