OORT Boost FAQ
OORTBoost is the first decentralized lending protocol designed for OORT ecosystem.
What is an interest rate curve?
The interest rate curve is a key concept in our lending products and is used to adjust the lending rates along with different lending market conditions. Specifically, the interest rate curve is calculated based on the on-chain inflation of oort tokens and will be updated regularly to ensure its accuracy and fairness.
In our interest rate model, the interest rate curve has several important features:
- Maximum borrowing interest rate: When the utilization rate reaches its highest point, the borrowing interest rate is 1/4 of the current annualized output.
- Intermediate lending rate: When the utilization rate reaches 80%, the lending rate is 1/8 of the current annualized output.
- Minimum borrowing interest rate: When the utilization rate is 0%, the borrowing interest rate is 1/16 of the current annualized output.
The purpose of this design is to stimulate and regulate market behavior so that lending rates can flexibly reflect market demand and supply. Simply put, when demand for borrowing is high, interest rates rise; when demand is low, interest rates fall.
In addition, apart from interest rate adjustments, our lending agreement does not charge any other fees, ensuring that users can participate in lending activities at the lowest cost.
What are the minimum amounts required to borrow and deposit?
In our lending products, in order to ensure that all users can easily participate in lending activities, we have set very low thresholds for the minimum amounts for borrowing and depositing.
Minimum loan amount
There is no minimum loan amount required. This means that you only need to have the device as collateral to enable the borrowing service. This low threshold is designed to allow more users to flexibly manage their capital needs, whether it is short-term liquidity needs or long-term capital planning.
Minimum deposit amount
There is no minimum deposit required. With such a low deposit threshold, users can easily deposit their idle funds into our platform and enjoy the benefits brought by the interest rate curve model. Depositing users can withdraw funds at any time when needed and enjoy efficient and convenient deposit and withdrawal services.
Our goal is to provide users with a fair, transparent and convenient lending platform. By lowering the minimum amount requirements for borrowing and depositing, we hope to attract more users to participate in our ecosystem and enjoy the convenience and benefits of decentralized finance.
How are deposit returns calculated and distributed?
The income from deposits will be calculated and issued through our well designed interest rate curve model. Specifically, your earnings are based on the lending of OORT tokens throughout the protocol and are updated in real time.
Earnings are dynamically calculated based on the amount of OORT tokens you deposit and the current interest rate curve, and are added directly into your deposit amount in the form of OORT tokens. The entire process is transparent and implemented by smart contract, ensuring that you receive the benefits you deserve in real time.
It’s worth mentioning that our lending protocol does not charge any fees other than the interest rate draw. Therefore, you can safely deposit OORT tokens into our platform and enjoy an efficient and low-cost revenue distribution mechanism.
How is interest calculated and paid?
In our lending products, the interest calculation for borrowing is based on the interest rate curve model, which is set and regularly updated based on the output of the entire Oort network. The following are the specific interest calculation details:
Interest rate curve model: Our interest rate curve model is based on the design of Compound V2. The interest rate curve is designed to balance the demand for borrowing and the cost of borrowing.
Interest calculation formula:
Interest is calculated in real time based on the above interest rate curve model. The specific formula is as follows:
Interest = Borrowing principal * Borrowing interest rate * Borrowing time
Interest payment:
Interest is accumulated in the debt according to the borrowing period and is paid with each repayment.
Borrowers can also choose to repay early, and only pay interest during the actual borrowing period.
What are the fees and charges for lending products?
Our lending products are designed to provide users with a transparent and fair fee structure. Here are the specific fees and charges associated with lending products:
Deposits/Withdrawals: No fees
Pledge equipment/retrieve equipment: no handling fee
Borrow/Repay: No handling fee
Interest rate difference collection: This is the only income of the platform, which has been included in the interest rate curve. The deposit/loan interest rate you see is the actual interest rate.
What kind of collateral does one need to provide when borrowing?
What kind of collateral does one need to provide when borrowing?
In our lending products, users need to provide specific collateral to obtain a loan limit. Specifically, miners need to create their own uniquely bounded vault, and miners pledge their devices into the vault. Each vault is bound to a specific OORT address. This means that each user (from address) has its own dedicated vault to store collateral.
Why do I need to provide collateral?
The main purpose of collateral is to ensure the safety and stability of borrowing, thereby protecting the interests of all participants.
How do I manage my collateral?
When you stake your device into a vault, the system automatically manages the collateral. You can view and manage your collateral status at any time through our platform.
When the account balance is greater than the amount owed, miners can take back the pledged device or increase the amount of pledged device at will.
Note that each vault can only hold up to 64 devices.
How to ensure the security of collateral?
We use multiple layers of security to protect your staked devices and ensure they remain safe in the vault. All collateral will be securely escrowd to ensure that it cannot be accessed or manipulated without authorization. The entire operation process is controlled only by smart contracts, further increasing security.
