Baker Finance
  • Introduction
    • Welcome to Baker Finance!
    • Smart Contracts
    • Roadmap
    • Pitch Deck
    • Security & Audits
  • Leveraged Yield Farming
    • Introduction to the Protocol
    • Leveraged Yield Farming
    • Lending
    • Liquidation
    • Global Parameters
    • Step by Step Guide
      • Lending
      • Open a farming position
      • Adjust a farming position
      • Close a farming position
  • Tokenomics
    • $BAKER Token & Governance
    • Tokenomics & ILO
  • Community Links
    • Telegram Chat
    • Telegram Announcements
    • Twitter
    • Medium
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  • Fee Structure
  • Interest Rate Model
  • Minimum Debt Size
  1. Leveraged Yield Farming

Global Parameters

Leveraged Yield Farming Parameters

Fee Structure

There is no deposit or withdrawal fee in any of the lending or farming vaults.

The fee structure for the protocol is:

  • Liquidation Bounty: 5% of the position value at liquidation

    • 4% goes to buyback of BAKER and distributed through the governance pool.

    • 1% goes to the liquidator as reward for closing the position

  • Lending Performance Fee: 19% of the borrowing interest profit of lenders. All of it goes to buyback of BAKER and distributed through the governance pool.

  • Farming Performance Fee: 9% of the yield farming rewards that are collected. All of it goes to buyback of BAKER and distributed through the governance pool.

  • Single-Asset Farming Performance Fee: 19% of the yield farming rewards that are collected. All of it goes to buyback of BAKER and distributed through the governance pool.

Interest Rate Model

The interest rate for lenders is calculated according to what percentage of the collateral is borrowed from each vault at any given time. We call this the Utilization %.

With higher percentages of Utilization, the interest rates will go higher to incentivize lending. When percentages are lower, it will happen the opposite to incentivize borrowing.

Each vault uses a triple-slope interest rate model to determine the borrowing interest rate.

Borrowing Interest = m * utilization + b

Lending Interest = Borrowing Interest * Utilization * ( 1 - Lending Performance Fee)

Utilization
Min rate
Max Rate
m
b

0-60 %

0%

20%

1/3

0

60-90 %

20%

20%

0

0.2

90-100 %

20%

150%

13

-11.5

AGREGAR GRAFICO DE INTEREST MODEL

Minimum Debt Size

The minimum amount of assets that a user can borrow to open a leveraged position.

Asset
Value

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Last updated 3 years ago