# LoopStake Lending Parameters

Last updated

Last updated

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 collateralβs value that can be borrowed. |
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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

Rate Curve

vDOT

Rate Curve

Bifrost Kusama

KSM

Rate Curve

vKSM

Rate Curve

collateralFactor | 60% |
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rateModel | Jump |
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collateralFactor | 80% |
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rateModel | Jump |
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collateralFactor | 60% |
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rateModel | Jump |
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collateralFactor | 80% |
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rateModel | Jump |
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liquidationThreshold

70%

reserveFactor

3%

closeFactor

50%

baseRate

0

jumpRate

180,000,000,000,000,000

fullRate

500,000,000,000,000,000

jumpUtilization

90%

liquidationThreshold

90%

reserveFactor

3%

closeFactor

50%

baseRate

0

jumpRate

180,000,000,000,000,000

fullRate

500,000,000,000,000,000

jumpUtilization

90%

liquidationThreshold

70%

reserveFactor

3%

closeFactor

50%

baseRate

0

jumpRate

180,000,000,000,000,000

fullRate

500,000,000,000,000,000

jumpUtilization

90%

liquidationThreshold

90%

reserveFactor

3%

closeFactor

50%

baseRate

0

jumpRate

180,000,000,000,000,000

fullRate

500,000,000,000,000,000

jumpUtilization

90%

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.