Banker Joe adopts risk parameters commonly used by other lending protocols to manage platform risk.
Collateral Factor
The collateral factor is the percentage of collateral that can be borrowed against.
E.g. A deposit of 1000 USDC.e and a collateral factor of 80% means you can borrow up to $800 worth of assets.
Liquidation
Seized collateral is liquidated at an 8% discount for all markets in order to incentivise liquidators. Of the 8%, the protocol takes a portion of liquidated tokens as determined by the protocol seize share.
E.g The protocol seizes a 1.6% share of the 8% and the remaining 6.4% goes to the liquidator.
Flash Loan
Flash loan fee is 0.08% for all markets. Of the 0.08%, the protocol takes a portion of the fee as determined by the reserve factor.
E.g. A reserve factor of 20% means 0.016% will goto reserves and the remaining 0.064% will goto the depositors.
Reserve Factor
A portion of accrued interest and flash loan fee goes into the protocol reserves as determined by the reserve factor. The purpose of the protocol reserves is two-fold: 1) to act as an insurance buffer in a shortfall event and 2) to provide source of revenue for the protocol.
Symbol | Collateral | Collateral Factor | Reserve Factor | Protocol Seize Share |
AVAX | Y | 75% | 25% | 1.6% |
WETH.e | Y | 75% | 25% | 1.6% |
WBTC.e | Y | 75% | 25% | 1.6% |
USDC.e | Y | 80% | 10% | 1.6% |
USDT.e | Y | 80% | 10% | 1.6% |
DAI.e | Y | 80% | 10% | 1.6% |
LINK.e | Y | 60% | 25% | 1.6% |
MIM | Y | 60% | 25% | 1.6% |
xJOE (paused) | Y | 40% | 40% | 1.6% |
USDC (native) | Y | 80% | 20% | 1.6% |
JOE | Y | 40% | 25% | 1.6% |
BTC.b | Y | 75% | 25% | 1.6% |
USDT (native) | Y | 80% | 20% | 1.6% |
Glossary
Parameter | Description |
Collateral | Y = Accepted as collateral, users can borrow against this asset. |
Collateral Factor | Similar to Loan To Value (LTV), the higher the collateral factor the more borrow limit the user can take. |
Reserve Factor | Share of borrowing interest that is withheld by the protocol. |
Liquidation Discount | Discount to oracle market price which the asset is sold to liquidator, during the liquidation event. |
Flash Loan Fee | Fee that goes to protocol when a flash loan is made from the market |