Tectonic
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Money Market Parameters

Live Parameters (Changes in red will be updated 2 Feb 2023)

Asset
Reserve Factor (%)
Collateral Factor (%)
Close Factor (%)
Liquidation Penalty (%)
Base Rate (%)
Base Multiplier (%)
Kink Point (%)
Jump Multiplier (%)
USDC
5 -> 10
80
50
10
0
5 -> 7
85 -> 80
50 -> 100
USDT
10
80
50
10
0
5 -> 7
85 -> 80
50 -> 100
DAI
10
80
50
10
0
5 -> 7
85 -> 80
50 -> 100
TUSD
10
80
50
10
0
5 -> 7
85 -> 80
50 -> 100
CRO
10
80 -> 70
50
10
0
5 -> 8
80
50 -> 100
WETH
20
75
50
10
3
10
75
50
WBTC
20
75
50
10
3
10
75
50
TONIC
15
20
50
10
3
20 -> 25
55
120

Definitions

Collateral Factor
  • The maximum that can be borrowed on a particular asset.
  • Example: CRO collateral factor is 50%, if the price of CRO is $100, the maximum that can be borrowed using CRO as collateral is $50 in other assets.
Reserve Factor
  • The percentage of the spread between borrower's and lender's interest rates that accrues to the Tectonic protocol's treasury. It is made to sustain the protocol and pay protocol contributors.
  • Example: Reserve factor of 20% means that 20% of the interest paid on the asset is for the protocol.
Close Factor
  • The maximum amount that can be liquidated in a single transaction.
  • Example: 50% Close Factor means that a maximum of 50% of an account's borrow that is enabled as collateral can be repaid in a single liquidate transaction.
Liquidation Penalty
  • The Liquidation Fee is 10% with 7.2% going to liquidators as an incentive to perform liquidations and to keeping the protocol solvent, while the remaining 2.8% goes to Tectonic's treasury.
  • The funds accruing to Tectonic are used for expenses related to protocol maintenance (such as operating expenses) and to fund further developments.
Kink Point
  • Please see the explanation of Tectonic's jump rate interest rate model here
Base Rate
  • Please see the explanation of Tectonic's jump rate interest rate model here
Jump Multiplier
  • Please see the explanation of Tectonic's jump rate interest rate model here