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

85%

5%

15%

pDAI

80%

5%

15%

pUSDT

80%

5%

10%

pSUSD

80%

8%

20%

pNEO

50%

8%

20%

pUNI

65%

8%

20%

WING

40%

10%

30%

ONG

50%

8%

25%

pYFI

50%

8%

25%

Flash Pool (Ethereum)

Asset Type

Collateral Factor

Liquidation Bonus

Reserve Factor

pWING

40%

10%

30%

oneWING

80%

10%

20%

pONT

60%

8%

20%

ETH

85%

5%

15%

USDT

80%

5%

10%

USDC

80%

5%

10%

DAI

75%

5%

15%

UST

55%

8%

20%

WBTC

75%

8%

15%

PAXG

50%

8%

20%

xICHI

35%

15%

30%

Flash Pool (OKExChain)

Asset Type

Collateral Factor

Liquidation Bonus

Reserve Factor

WING

50%

10%

30%

ONTK

65%

8%

20%

OKT

65%

8%

20%

USDT

80%

5%

10%

USDC

80%

5%

10%

BTCK

75%

8%

15%

ETHK

85%

5%

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 UU, the corresponding interest rate is RR. At the kink pointkk, the capital utilization rate is UkU_k. The basic interest isR0R_0, and the interest rate at the kink point isR0+RkR_0+R_k. When the capital utilization rate is 100%, the interest rate is R0+Rk+R100R_0+R_k+R_{100}.

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

If U<Uk:If\ U<Uk: R=R0+U/UkRkR=R_0+U/U_k*R_k

If UUk:If\ U≥Uk: R=R0+Rk+(UUk)/(1Uk)R100R=R_0+R_k+(U-U_k)/(1-U_k)*R_{100}

Where,

Uk=80%U_k=80\%

For example,

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

when U=90%U=90\%,R=1%+7%+(90%80%)/(180%)100%=58%R=1\%+7\%+(90\%-80\%)/(1-80\%)*100\%=58\%.