# Parameters

Important parameters and formulas on the Wing platform

## Collateral Factor in Flash Pool

The Collateral Factor is a parameter that limits the maximum amount a user can borrow using a specific asset as collateral. Each asset in the Flash Pools has specific values related to their risk, which influences how they are loaned and borrowed. The calibration of the parameters for Wing Project is more aggressive as the Wing ecosystem is mature with some educated users and liquidators. The table below shows the Collateral Factor of each asset.

For example, if a user supplied \$1,000 worth of pETH to Flash Pool (Ontology), the maximum amount this user can borrow (borrow limit) is .

## Liquidation Bonus in Flash Pool

If a borrower's address reaches 100% of its borrow limit, the borrower's collateral assets will be liquidated. Liquidators can repay loans at the discounts listed below and thus earn liquidation bonus.

## Reserve Factor in Flash Pool

Reserve factor is a percentage of borrowers paid interest to be deposited in the Wing DAO Community Fund.

### Flash Pool (Ontology)

 Asset Type Collateral Factor Liquidation Bonus Reserve Factor ONTd 60% 8% 20% pwBTC 75% 8% 15% prenBTC 75% 8% 15% pUSDC 80% 5% 10% pETH 80% 8% 15% pDAI 80% 5% 15% pUSDT 80% 5% 10% pSUSD 80% 5% 20% pNEO 50% 8% 20% pUNI 65% 8% 20% WING 40% 8% 30% ONG 45% 8% 25% pYFI 50% 8% 25%

### Flash Pool (Ethereum)

 Asset Type Collateral Factor Liquidation Bonus Reserve Factor pWING 40% 8% 30% oneWING 85% 5% 20% pONT 60% 8% 20% ETH 80% 8% 15% USDT 80% 5% 10% USDC 80% 5% 10% DAI 75% 5% 15% UST 55% 5% 20% WBTC 75% 8% 15% xICHI 35% 8% 30%

### Flash Pool (OKExChain)

 Asset Type Collateral Factor Liquidation Bonus Reserve Factor WING 50% 8% 30% ONTK 65% 8% 20% OKT 65% 8% 20% USDT 80% 5% 10% USDC 80% 5% 10% BTCK 75% 8% 15% ETHK 80% 8% 15% DOTK 60% 8% 20% OKB 65% 8% 25% LINKK 60% 8% 20% SUSHIK 50% 8% 25% UNIK 60% 8% 20% DAIK 75% 5% 15%

## Borrowing Interest Rate Model in Flash Pool

Annual Percentage Rate (APR) is the annual interest rate charged to borrowers.

In WIP-15, a kink point was introduced to the interest rate model. The new interest rate model before and after the kink point uses different formulas. The interest rate growth before the kink point is relatively slow, compared to a rapid increase after the kink point.

When the capital utilization rate is $U$, the corresponding interest rate is $R$. At the kink point$k$, the capital utilization rate is $U_k$. The basic interest is$R_0$, and the interest rate at the kink point is$R_0+R_k$. When the capital utilization rate is 100%, the interest rate is $R_0+R_k+R_{100}$.

The capital utilization rate and interest rate follow the model below:

$If\ U $R=R_0+U/U_k*R_k$

$If\ U≥Uk:$ $R=R_0+R_k+(U-U_k)/(1-U_k)*R_{100}$

Where,

$U_k=80\%$

For example,

when $U=20\%$,$R=1\%+20\%/80\%*7\%=2.75\%$.

when $U=90\%$,$R=1\%+7\%+(90\%-80\%)/(1-80\%)*100\%=58\%$.