Kyoko
  • Kyoko Introduction
  • HOW IT WORKS
    • Peer-to-Pool NFT Lending Platform
      • P2P NFT Lending Introduction
        • As Lenders: Earning Interest
        • As Borrowers: Get Instant Loans
        • NFT as the collateral
        • NFT Price Discovery
      • Who can create the pools?
        • The Blue-Chip Pools
        • The Shared Pool
      • Risk Models: Health factor or Time-based
        • Risk Framework
        • Dual Rates
        • NFT Risk Parameters
      • Pending Liquidation
        • Auction liquidation
        • Bad Debt
      • Security and Audits
    • Cross-Chain GameFi Assets Lending(CCAL)
      • How to use Cross-Chain GameFi Assets Lending?
      • FAQ for CCAL
  • TOKEN
    • Token distribution
    • Understanding $KYOKO in P2P NFT Lending
      • Staking (Shared income)
        • Staking your $KYOKO
        • Claiming shared income
      • Voting
        • Vote Locking
        • Governance Mechanism
        • Snapshot
        • Proposals
    • Vesting
    • Stake
      • Liquidity Mining
      • How to start staking?
    • Business Model
    • Governance
      • KRCs
      • KIPs
      • Governance forum
      • Voting(Snapshot)
  • Roadmap
  • Security and auditing
  • Contact
  • DEPLOYED CONTRACTS
    • P2P NFT Lending
    • Cross-Chain GameFi Assets Lending(CCAL)
  • TEST
    • P2P NFT Lending testnet
    • Cross-Chain GameFi Assets Lending(CCAL)
  • COMMUNITY
    • Twitter
    • Telegram
    • Discord
    • Medium
    • Github
    • TERMS OF SERVICE
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  • The Fixed Rate
  • The Variable Rate

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  1. HOW IT WORKS
  2. Peer-to-Pool NFT Lending Platform
  3. Risk Models: Health factor or Time-based

Dual Rates

All pools can choose a pattern between the fixed rate model and the variable rate model. The creators of permissionless pools can choose to be the fixed rate available in the creation process.

The Fixed Rate

This kind of rates act as a fixed rate in the short-term, but can be re-balanced in the long-term in response to changes in the utilization and efficiency of the liquidity. The fixed rate, as its name indicates, will remain pretty stable in a specific lending period.

fixed rates corresponding to the Overdue Liquidation model

If a pool chooses to apply the fixed rate model, when the borrowers borrow ETH from the variable-rate pool using NFT as collateral, there is a fixed-time lending period to pay back the ETH. If the borrowers' loan is overdue, the collateralized NFT should be liquidated.

The Variable Rate

The variable rate will change over time and could be the optimal rate depending on liquidity pools condition.

Stable rates corresponding to the Health Factor Liquidation model

If a pool chooses to apply the variable rate model, when the borrowers borrow ETH from the variable-rate pool using NFT as collateral, there is no fixed-time lending period to pay back the loan. As long as your position is safe, you can borrow for an undefined period. However, as time passes, the accrued interest will grow to make your health factor decrease, which might result in your deposited NFT becoming more likely to be liquidated.

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Last updated 2 years ago

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