Announcement of Alpha Testing on Konomi Lending Mainnet
Konomi Ocean Lending will start Alpha testing on the Konomi BSC mainnet on June 24, 2022 (Singapore time). The test will last for one month and will support BTC, ETH, BNB, USDT and Kono Lending (Kono cannot be used as collateral). As this is the first test of Konomi Lending, the entire pool will be capped at $300,000 and set by Konomi for the safety of users’ funds. Participants in the first test will have the opportunity to receive an official Konomi reward, which will be distributed at the end of the test.
At the end of this test, we will remove the TVL cap on individual pools and allow full access for all users. Users will then be able to become Ocean Owners and set pool parameters freely and create their own pools to receive exclusive Ocean Owner lending rewards.
To help you understand the rules for setting the parameters of a Konomi Lending pool, we will now use an example to illustrate the impact of the Konomi Lending pool parameters on interest rates.
Now, suppose that there is a pool containing only ETH and that its parameters are set as follows:
From the information in this chart, the close factor for this pool is 80% and the liquidator is entitled to an 8% clearing bonus.
From the picture above, we understand that ETH can be used as collateral and its collateral factor is set at 70%. This means that $100 USD worth of ETH can be used to borrow $70 USD worth of other tokens. In terms of interest rate models, the Konomi Lending interest rate models make use of a segmented linear function to set the interest rate parameter, as shown in Table 1.
In simple terms, if the parameters are set as shown in Picture 2, the base rate of this ETH pool is 1% and will increase by 2% for every 1% increase in the Utilization Ratio when the Utilization Ratio is less than or equal to 80%. When the Utilization Ratio is greater than 80%, the rate will increase by 5% for every 1% increase in the Utilization Ratio.
ABOUT KONOMI
KONOMI is a decentralised liquidity and money market protocol for cross-chain crypto assets. Using substrate as the development framework, the network aims to provide a money market for assets in the Polkadot ecosystem.
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Mainnet: Konomi.tech
Dev Net: dev.Konomi.tech
