Peer-to-Peer Pool

Important parameters and formulas in Wing NFT Pool

Collateral Factor

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 Peer-to-Peer 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.

For example, if a user supplied $1,000 worth of ETH to Peer-to-Peer Pool, the maximum amount this user can borrow (borrow limit) is $1,000*82.5\% = $825.

Liquidation Bonus

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

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

Parameters in Peer-to-Peer Pool

Assets	Collateral Factor	Liquidation Bonus	Reserve Factor
WETH	82.5%	8%	20%
COMP	65%	8%	20%
DAI	83.5%	8%	20%
USDC	85.5%	8%	20%
USDT	0	8%	20%