MOV Jiedai lending Protocol is a digital asset interest rate protocol designed based on the Bytom main chain and the Layer 2 side-chain Vapor. The protocol provides an asset pool based on changes in the supply and demand of digital assets and calculated by the smart contract algorithm model, as well as 24/7 exchange rate monitoring. And risk management system. The protocol allows the supplier (lender) and borrower of the asset to directly interact with the protocol and the contract to earn income or pay with floating interest rates. At the same time, there will also be a group of users who participate in liquidation auctions for arbitrage to help maintain the protocol system safety and balance sheet balance. From the perspective of business logic, MOV lending mainly includes three modules: deposit, borrow and liquidation.
How to use MOV lending protocol in Bycoin
Enter Bycoin, using the lending function and click "Borrow"
Choose the token and amount you want to borrow and set the collateral rate. Currently there are 4 types of assets supported by lending (BTC, ETH, LTC, DOT), and there are 5 optional collaterale rates. The higher the collateral rate, the less likely it is to be liquidated. When the collateral rate is lower than the collateral liquidation threshold, the auction liquidation process will be triggered. Your hedged assets will be auctioned!
After assets were lent, the order and data will be updated to the lending page, and the risk status of the order will be displayed according to the current collateral rate
Click your Borrow item, and enter to the "Borrow details", you can enter the amount you want repay, when you repay all the amount, and your collateral will be return to your account.
The current collateral rate shown here refers to the liquidation threshold after the token is repaid, which will change dynamically according to the amount of token changed.
In order to prevent from being auctioned and liquidated, when the ollateral rate is low, there are two ways to improve the current ollateral rate, in addition to returning part of the lent assets, you can also add collateral. Click "Add Collateral" on the order details page. There is an upper limit for the increase of collateral, the maximum collateral rate is 330%.
You can also deposit your asset to earn interest, click
At present, there are four kinds of assets: BTC, ETH, LTC. when the assets are stored in the lending pool, they can enjoy income. Compared with the SuperTx pool, the lending pool has stable income and no free loss. The specific yields is subject to the actual situation, and the figure below is for reference only
You can withdraw your deposit, the deposit asset can be found in "Deposit" Tab.
Click your deposit, in this picture it's ETH, and you can withdraw your deposit or add more to your deposit.
When the Liquidation rate of a certain asset loan is lower than the liquidation threshold, the liquidation auction is started immediately, the collateral of the asset loan is sold to bidders through auction to recover the principal and interest.
Note：you should care about the collateral rate to avoid liquidation risk.
Liquidation auction process:
Bidders can sign up to participate in the auction in each auction cycle after it launches. Bidders need to freeze the deposit of the corresponding amount (i.e. auction price). After the auction, they can get back the deposit balance or participate in other auctions. At the end of the auction, the liquidation protocol randomly selects a bidder as the winner of the auction, and the bidders are selected with equal probability.
- The debt assets to be recovered are auction assets, and the collateral assets to be sold are auction assets.
- Deposit: before auction, bidders need to deposit a certain amount of assets as margin (the margin that uniformly locks the current bidding round price) into the margin pool. The auction money is deducted from the bidder's margin, and the remaining margin can be used for auction of other similar assets or retrieved.
- The upper limit of each auction is 10000 USD. If the market value of the collateral exceeds the upper limit, it will be split according to the upper limit.
- Auction price of collateral: 95% of the market value of collateral at auction, which can be adjusted under specific circumstances.
- Each auction period of collateral: 10 minutes. If there is no bidder, it will be postponed or the platform will take measures to deal with it, such as adjusting the auction price.
- Liquidation penalty: 5% of the proceeds from the auction of collateral, which is used as the risk reserve of the system.
- The auction proceeds shall be used to repay the borrowed assets and interest owed by the borrower. If there is still a surplus, the liquidation penalty shall be deducted as the risk reserve. If there is still a surplus, it shall be returned to the borrower. If there is a capital gap, it shall be made up with the risk reserve. If the risk reserve cannot be made up in full, the gap shall be borne by all depositors of the lending pool.
How to participate in liquidation auction?
Click "Liquidation" Tab and choose the asset your want to bid.
Choose the auction you want to participate in
In the case of sufficient deposit, you can click "Participate in Auction". After successful participation, your address will be displayed in the auction list, and the system will randomly select the winning bidder from all the participating addresses.
Risk warning: This product uses over-collateralization. Please be cautious in participating in lending and liquidation, control risks, and choose products that suit your own risk tolerance for investment. Avoid asset damage caused by improper operation or market fluctuations.