bLending - in writing

Introduction

bLending is the lending platform for users to borrow and lend tokens of the bEarn ecosystem. Initially, we launch the set of assets for the tokens below:

Collateral ratio(will be amended after beta closed)

BDO Borrow Limit 750k Token Amount, (not $ value)

  • BDO: 5%

  • BNB: 50%

  • BUSD: 75%

Other tokens will be added by team selection or community vote!

Price Oracle:

  • Band Protocol price feed for BNB, BUSD

  • BDO price feed through ChainLink across pair (BNB/USD)

Category : Stable & Major

APY adjusts to Utilisation Rate

Parameter

Value

Tokens

BNB, BUSD, BTCB, XRP, LTC, BCH, ETH, USDT, ADA, EOS, DAI, XTZ, USDC, renBTC, BETH, WBNB

Base

2%

Multiplier

25%

JumpMultiplier

500%

Kink

80%

Category : Governance & Seeds

APY adjusts to Utilisation Rate

Parameter

Value

Tokens

LINK, CREAM, BAND, FIL, YFI, UNI, ATOM, ALPHA, TWT, CAKE, XVS, BAT, VAI, AUTO, renZEC, IOTX, SXP, SUSHI

CAKE-LP-CAKE-BNB

CAKE-LP-BNB-BUSD

CAKE-LP-BTCB-BNB

CAKE-LP-ETH-BNB

CAKE-LP-USDT-BUSD

Base

2%

Multiplier

35%

JumpMultiplier

750%

Kink

80%

Supply APY

Supply APY is reliant of the Utilisation Rate of your supplied assets by the borrow market. Current Utilisation Rate of Your Assets can be found at the bLending Summary Page. in short, the higher the utilisation rate the higher apy you can get for those assets.

Equation of the interest on Supply APY

= Distribute (Interest Paid by Borrowers Per Block - Reserve) to all suppliers, and convert it into APY

= Distribute [(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) to all suppliers, and convert it into APY

= {[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply}, and convert it into APY

= {1 + [(1 + Borrow APY) ^ (1/BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply} ^ BlocksPerYear - 1

= {1+[(1+Borrow APY)^(1/BlocksPerYear)-1]*(1-Reserve Factor)*Utilization Rate}^BlocksPerYear-1

BlocksPerYear = 10,512,000 (3 sec per block)

Borrow APY

[1 + Base + Multiplier * min(UtilizationRate, Kink) + max(JumpMultiplier * UtilizationRate - Kink, 0)] ^ BlocksPerYear - 1

Incentive APY - Staking

Incentive APY is a 2-step process by staking your supplied assets at the staking tab and yield BFI & xBFI. APR's Calculation is based on price of BFI.

  • blBDO: 2x

  • blBNB: 1x

  • blBUSD: 1x

bl Tokens is a proof of stake tokens depending on which asset you've supplied via the supply market. xBFI use case will be updated soonest.

Also, take note you will have less or none of these bl tokens depending on if you've borrowed against your assets.

bl tokens to the actual supplied ratio is not 1:1.

Liquidation Tolerance Risk - 8%

After you've borrowed against your assets, when the value of the borrow assets touches 8% passed the Base Token Max Collateral. The Smart Contract will activate immediately and your base supply tokens will be liquidated to pay the borrowed assets. When this happens, you can keep the borrowed assets without needing to pay back.

BDO - 5% + 8% BNB - 50% + 8% BUSD - 75% + 8%

Example Scenarios for BDO

Supplied 10000 BDO worth $0.60 = $6000 Maxed out & borrowed against your BDO for BUSD so you have = $300 BUSD For each day your borrowed BUSD isn't paid back, Daily interests will gain and compound on top of your base $300 + unpaid interests BUSD which will then and narrow the Liquidation Tolerance Risk %. When the unpaid interest + borrowed assets grows hits $780, the Smart Contract will activate and your BDO will liquidate $780 Worth of BDO, this scenario only happens if we assume BDO to maintain the price of $0.60. $780 being 13% of the your Base BDO value. 13% is derived from 5% Maxed-out Collateral + 8% Liquidation Tolerance Risk Another scenario, to touch 13% liquidation, let's assume BDO price is falls immediately after you've borrowed $300 BUSD, in order your positions to be liquidated to pay for 300, BDO needs to falls down to around $0.23. and then you will be left with around $2000 worth of BDO after liquidation. This also means you can borrow more BUSD if BDO's prices goes up instead.

Profit Sharing to Governance

Profits from bLending is via the Reserve Factor in Borrowed Assets as and when they are being borrowed and interests are paid back.

  • BNB, BUSD - 15% Reserve Factor

  • BDO - 20% Reserve Factor

**For Example, for every $1 of interests paid back to bLending by borrowers, $0.15 are given as profits to Governance for the BNB, BUSD assets category.

In True DeFi Spirit, bEarn's Team will not keep any of the profits for Dev's or Marketing Team :

Profit Sharing Allocation : - 30% to bStake - 30% to bPower - Loyalty Program (not live at point of writing) - 40% to bDollar's DAO fund