Stellar
$0.5976 8.76%
XLM · 6w

Introduction YieldBlox- a Stellar-based DeFi Lending Protocol

Lending

Users lend with YieldBlox by depositing assets in the YieldBlox pool in exchange for pool tokens. The pool tokens represent the user’s percentage of ownership in the pool. So, if a user deposits 1/10th of the pool’s balance of an asset, they will receive 1/10th of all outstanding pool tokens for that asset. There is a unique pool token for each asset the pool supports. As users make interest fee payments to the YieldBlox pool, its balances increase, increasing the amount of assets allocated to each pool token. When a lender burns their pool tokens, they receive their initially deposited capital + a proportional amount of the interest fees collected by the pool.

Borrowing

Users borrow with YieldBlox by locking collateral in a claimable balance (claimable by the YieldBlox pool) in their account in exchange for a loan from the YieldBlox pool. The value of the collateral must be at least 110% of the value of the loan. Users can only use YieldBlox pool tokens as collateral, so if they provide normal assets, the protocol converts them into pool tokens before locking them in the claimable balance. Since borrowers use pool tokens as collateral, they generate interest with their collateral. Borrowers can borrow for as long as they wish. However, if the value of their loan plus accrued interest exceeds 95% of the value of their collateral value, the loan can be liquidated. Loans are liquidated using a liquidation txFunction which allows a liquidator to repay a delinquent loan in exchange for the borrower’s collateral. Thus, to avoid losing their collateral, the borrower needs to commit additional collateral over the lifecycle of their loan to ensure it does not become delinquent. Borrowers repay loans by depositing the lent assets plus all accrued interest fees into the YieldBlox pool in exchange for their committed collateral.

Interest Rates

YieldBlox calculates interest rates using a purely demand-based equation. This means the equation does ...

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