Parameters

Formulas and parameters value in Wing project

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 Pool 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.

Flash Pool (Ontology)

Asset Type

Collateral Factor

ONTd

60%

pwBTC

75%

prenBTC

75%

pUSDC

80%

pETH

80%

pDAI

80%

pUSDT

80%

pSUSD

80%

pNEO

50%

pUNI

65%

WING

40%

ONG

40%

pYFI

55%

Flash Pool (Ethereum)

Asset Type

Collateral Factor

pWING

40%

oneWING

85%

pONT

60%

USDT

80%

ETH

80%

WBTC

75%

Flash Pool (OKExChain)

Asset Type

Collateral Factor

WING

50%

ONTK

65%

OKT

70%

USDT

80%

USDC

80%

BTCK

70%

ETHK

70%

DOTK

65%

OKB

70%

LINKK

65%

SUSHIK

50%

UNIK

60%

DAIK

75%

According to the Collateral Factor for each asset, users can calculate the maximum asset value that can be borrowed.

For example, User A supplied $1,000 worth pETH, then the maximum asset value can be borrowed for User A is $1,000*80% = $800.

Borrowing Interest Rate Model in Flash Pool

APR is the abbreviation for Annual Percentage Rate, which is the annual rate of interest 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.

We set the capital utilization rate to "U" and the interest rate to "R" so that when the capital utilization rate is "U", the corresponding interest rate will be "R." The kink point (k) will have a capital utilization rate of "Uk." When the basic interest is R0, the kink point intersection will be R0+Rk, and the interest when the capital utilization rate is 100% is R0+Rk+R100.

Formulas:

If U<Uk: R=R0+U/Uk*Rk

If U≥Uk: R=R0+Rk+(U-Uk)/(1-Uk)*R100

Model Parameters:

R0=1%

Rk=7%

R100=100%

Uk=80%

For example,

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

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

Reserve Factor in Flash Pool

Reserve factor is the proportion of borrow interests reserved. Currently, the number is 15% for all assets in Flash Pool.

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 buy collateral assets at the discounts listed below and thus earn liquidation bonus.

Flash Pool (Ontology)

Asset Type

Liquidation Bonus

ONTd

8%

pwBTC

8%

prenBTC

8%

pUSDC

5%

pETH

8%

pDAI

5%

pUSDT

5%

pSUSD

5%

pNEO

8%

pUNI

8%

WING

8%

ONG

8%

pYFI

8%

Flash Pool (Ethereum)

Asset Type

Liquidation Bonus

pWING

8%

oneWING

5%

pONT

8%

USDT

5%

ETH

8%

WBTC

8%

Flash Pool (OKExChain)

Asset Type

Liquidation Bonus

WING

8%

ONTK

8%

OKT

8%

USDT

5%

USDC

5%

BTCK

8%

ETHK

8%

DOTK

8%

OKB

8%

LINKK

8%

SUSHIK

8%

UNIK

8%

DAIK

5%