Protocol Parameters

Collateral Factor, Reserve Factor

Loan To Value (LTV)

The maximum that can be borrowed on a particular asset.

Collateral assetLTV

sORAI

60%

scORAI

60%

Reserve Factor

The percentage of the borrower's interest accrues to Orchai protocol and can be withdrawn through governance.

AssetReserve Factor

USDT

10%

Interest Rate Model

Orchai's interest rate model dynamically adjusts the interest rates of each asset market depending on the utilization rate. A high ratio would incur higher interest payments from borrowers, and consequently higher interest payments to suppliers, thereby encouraging suppliers to add more assets to the protocol and ensuring healthy levels of available liquidity.

Interest Rate Model is based on the following parameter:

ParameterValue

UoptimalU_{optimal}

80%

B0B_0

2%

Bslope1B_{slope1}

8%

Bslope2B_{slope2}

40%

Borrowing Interest Rate and Lending Interest Rate can be illustrated in the following chart:

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