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

Factors	Parameters
collateralFactor	60%
liquidationThreshold	70%
reserveFactor	3%
closeFactor	50%

Rate Curve

Factors	Parameters
rateModel	Jump
baseRate	0
jumpRate	180,000,000,000,000,000
fullRate	500,000,000,000,000,000
jumpUtilization	90%

vDOT

Factors	Parameters
liquidationThreshold	80%
liquidationThreshold	90%
reserveFactor	3%
closeFactor	50%

Rate Curve

Factors	Parameters
rateModel	Jump
baseRate	0
jumpRate	180,000,000,000,000,000
fullRate	500,000,000,000,000,000
jumpUtilization	90%

BNC

Factors	Parameters
collateralFactor	60%
liquidationThreshold	70%
reserveFactor	3%
closeFactor	50%

Rate Curve

Factors	Parameters
rateModel	Jump
baseRate	0
jumpRate	45,000,000,000,000,000
fullRate	500,000,000,000,000,000
jumpUtilization	60%

vBNC

Factors	Parameters
collateralFactor	80%
liquidationThreshold	90%
reserveFactor	10%
closeFactor	50%

Rate Curve

Factors	Parameters
rateModel	Jump
baseRate	0
jumpRate	45,000,000,000,000,000
fullRate	500,000,000,000,000,000
jumpUtilization	60%

ETH

Factors	Parameters
collateralFactor	60%
liquidationThreshold	70%
reserveFactor	3%
closeFactor	50%

Rate Curve

Factors	Parameters
rateModel	Jump
baseRate	0
jumpRate	45,000,000,000,000,000
fullRate	500,000,000,000,000,000
jumpUtilization	60%

vETH

Factors	Parameters
collateralFactor	80%
liquidationThreshold	90%
reserveFactor	10%
closeFactor	50%

Rate Curve

Factors	Parameters
rateModel	Jump
baseRate	0
jumpRate	20,000,000,000,000,000
fullRate	500,000,000,000,000,000
jumpUtilization	60%

Bifrost Kusama

KSM

Factors	Parameters
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%