Flash Pools

Important parameters and formulas in Wing Flash Pools

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 $1,000*80\% = $800.

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%
FLM	45%	10%	25%

Flash Pool (Ethereum)

Asset Type	Collateral Factor	Liquidation Bonus	Reserve Factor
pWING	40%	10%	30%
oneWING (New)	70%	8%	15%
pONT	60%	8%	20%
ETH	85%	5%	15%
USDT	80%	5%	10%
USDC	80%	5%	10%
DAI	75%	5%	15%
UST	0%	8%	20%
WBTC	75%	8%	15%
PAXG	50%	8%	20%
xICHI	0%	15%	30%
LINK	65%	8%	20%
UNI	55%	8%	20%
BAL	45%	10%	25%
SNX	50%	8%	25%
SUSD	60%	8%	20%
xSUSHI	50%	8%	25%
oneWING (Legacy)	0%	10%	100%

Flash Pool (OKC)

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%
LINK	60%	8%	20%
SUSHIK	50%	8%	25%
UNIK	60%	8%	20%
DAIK	75%	5%	15%

Flash Pool (BNB Chain)

Asset Type	Collateral Factor	Liquidation Bonus	Reserve Factor
WING	40%	10%	30%
ONT	60%	8%	20%
ONG	50%	8%	25%
BTCB	75%	5%	15%
ETH	85%	5%	15%
BNB	75%	5%	15%
USDT	80%	5%	10%
BUSD	70%	5%	15%
USDC	80%	5%	10%
DOT	60%	8%	20%
ADA	65%	8%	20%
BCH	65%	8%	20%
XRP	65%	8%	20%
DAI	75%	5%	15%
LINK	60%	8%	20%
LTC	65%	8%	20%
DOGE	55%	8%	25%
CAKE	55%	8%	25%
FIL	60%	8%	25%

Flash Pool (Ontology EVM)

Asset Type	Collateral Factor	Liquidation Bonus	Reserve Factor
WING	40%	10%	30%
WONT	60%	8%	20%
ONG	50%	8%	25%
ETH	85%	5%	15%
WBTC	75%	8%	15%
USDT	80%	5%	10%
USDC	80%	5%	10%

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:

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

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

Where,

$R_0=1$%

$R_k=7$%

$R_{100}=100$%

$U_k=80\%$

For example,

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

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