Fees & Parameters

Protocol Parameters

Parameter NameValueDescription

Liquidation Fee

5%

For any proceeds that come from liquidations, this fee is taken from them while the rest is used to pay off the Account's debt. If collateral liquidated for 100 USDB, protocol makes 5 USDB and 95 USDB debt is repaid.

Flash Loan Fee

0%

Fee taken from any profits made using a flash loan on the protocol.

Lending Fee

0%

Fee taken from the interest rate lenders are earning. If lenders would earn 10% and lending fee is 10%, then lenders actually earn 9% and protocol earns 1%.

Liquidation Threshold

125%

Account is liquidatable when its equity value (collateral + investments) is below this % of their debt value.

Strategy NameFee Description

UniswapV2Spot

0.5% fee is taken on every withdrawal regardless of profit made.

ParticleTrade

2% fee is applied to the base used to open the position. If position is opened with 1000 USDB, protocol takes 20 USDB and opens position with 980 USDB

We treat WETH as 100% of its value in USDB, and we will enable up Accounts to borrow up to 300% LTV against that.

Account liquidation threshold.

  • Equity has to be less than X% of loan value before it is liquidated where X% is some % greater or equal to 100%.

Parameters per Strategy to mitigate exposure.

  • Deposit caps (limit how much USDB can be deposited into a Strategy)

  • Risk adjusted values (1 USDB deposited in Strategy with Risk A shouldn't be equal to 1 USDB deposited in Strategy with Risk B).

Mitigate risk per Account.

  • Account can only have X% of their loan allocated to Y strategy.

Collateral liquidation incentives.

  • We need to incentive timely liquidations when Accounts become liquidatable in order to protect lenders.

  • Since we have flash loans, we can advertise that functionality to others who can run collateral liquidation bots as well.

  • We can sell the user's debt in exchange for their collateral at some bonus.

    • If user has WETH has a 10% liquidation bonus, liquidator can pay off 1 USDB of debt to get at most 1.1 USDB of WETH collateral.

Caps on Lending Pool USDB deposits and Manager WETH deposits.

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