Contango x Exactly
Exactly is unique lending market on Optimism, offering both fixed and variable rates.
Disclaimer: the information below is provided for informative purposes only and should not be considered financial advice. Leverage trading carries significant risk. Do your own research.
Summary of the Exactly integration
- Type of money market: variable and fixed rate
- Audited: yes (ABDK, Open Zeppelin)
- Chains live on Contango: Optimism
- Available pairs: 5
- Rewards offered: esEXA
What is Exactly?
Exactly is a new money market on Optimism that sets interest rates based on credit supply and demand, enabling users to lend and borrow both variables and fixed interest rates.
Its Variable Rate Pool contains a single type of asset without an expiration date. Interestingly, this pool provides liquidity to all the other Fixed Rate Pools to ensure they can still satisfy the demand for new loans when deposits are insufficient. The goal of the Variable Rate Pool is to solve the problem of fragmented liquidity across different Fixed Rate Pools. Users can supply or borrow assets from these Fixed Rate Pools once they put their collateral on the Variable Rate Pool: each new deposit generates an increase in the liquidity for that specific Fixed Rate Pool, reducing its utilization rate and its fixed interest rate for new loans as a consequence.
Exactly was started in July 2021 and launched on Ethereum Mainnet in November 2022. It is currently live on Optimism only.
Contango only integrates Exactly on the variable rate side of things, but it leaves the door open for fixed rates too.
Exactly tokenomics
EXA is the token at the heart of Exactly tokenomics. EXA holders are entitled to vote on the Protocol’s main decisions, including: setting collateral requirements, introducing new collateral types, adjusting borrowing and lending terms, and managing token incentives.
EXA is also used for protocol incentivization and community building. Already 1% of the total token supply has been airdropped to early users, while 5% is currently earmarked for rewards to borrower and lenders in 2023. Users can benefit from other incentive mechanisms through strategic partnerships that Exactly has with Beefy and Velodrome.
Starting July 2023, EXA tokens were rewarded to users, but in October after a vote the protocol transitioned to esEXA, the escrow version of EXA (more details here). The idea behind esEXA is to provide rewards equivalent to EXA but with a linear 12-month vesting period, gradually releasing EXA tokens to ensure more sustainability to the protocol over the long-term. Rewards will be released until May 2028.
Learn more on Exactly docs.
About Contango
Contango lets you loop anything on-chain. You can create leverage (re)staking positions, arb rates differentials, farm points, or simply go long or short like a perp at low funding. Ape in like a degen with 1-click Strategies, or trade like a pro on the sleek Trade interface.
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About Exactly
Exactly is a new decentralized, non-custodial, and open-source protocol that provides an autonomous interest rate market to lenders and borrowers while setting interest rates based on credit supply and demand, enabling users to frictionlessly exchange the time value of their crypto assets at both variables and fixed interest rates for the first time in DeFi.
