Common Parameters
Liquidations
These parameters govern the speed, discounting and fees for both the solvent and insolvent auctions.
| Parameter | Contract Variable | Value | Bounds | Description |
|---|---|---|---|---|
| BUFFER_SCALE | bufferMarginPercentage | 0.15 | [0, 5.0] | A scaling factor used to determine the buffer margin. |
| LIQ_PERCENT | SolventAuctionParams.liquidatorFeeRate | 0.10 | [0.0, 1.0] | A percentage of the mark-to-market value of the portfolio used to compute the liquidation fee. |
| INITIAL_DISCOUNT | SolventAuctionParams.startingMtMPercentage | 0.05 (0.95 in contracts) | [0,1.0] | A small discount to the mark-to-market value of the portfolio used to compute the initial offer at the liquidation auction. |
| FAST_DISCOUNT | SolventAuctionParam.fastAuctionCutoffPercentage | 0.3 (0.7 in contracts) | [0, INITIAL_DISCOUNT] | Percentage discount at which the liquidation auction will begin to slow. |
| FAST_LIQUIDATION_TIME | SolventAuctionParams.fastAuctionLength | 15 minutes | [0, 100 hours] | Duration over which the fast component of the liquidation auction occurs. |
| LONG_LIQUIDATION_TIME | SolventAuctionParams.slowAuctionLength | 12 hours | [0, 1000 hours] | Duration over which the slow component of the liquidation auction occurs. |
| INSOLVENT_DURATION | InsolventAuctionParams.totalSteps InsolventAuctionParams.coolDown | 60 minutes | No bounds | Duration of the insolvent auction |
Cash (USDC)
These parameter control the interest rate paid on negative balances of the USDC cash asset.
| Parameter | Contract Variable | Value | Bounds | Description |
|---|---|---|---|---|
| OPTIMAL_UTIL | optimalUtil | 0.85 | [0.0, 1.0] | Ideal utilization (borrowing) of USDC, beyond which the interest rate increases quickly. |
| MIN_RATE | minRate | 0.02 | [0.0, 2.0] | Minimum interest rate |
| LOW_SLOPE | rateMultiplier | 0.08 | [0.0, 5.0] | Slow change in interest rate per change in utilization |
| HIGH_SLOPE | highRateMultiplier | 0.90 | [0.0, 5.0] | Fast change in interest rate per change in utilization |
| SM_INTEREST_SHARE | smFeePercentage | 0.2 if no insolvencies, 1.0 otherwise | [0.0, 1.0] | Percentage of the accrued interest given to the Security Module. |
Updated 3 months ago