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)
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.
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