Parameters
Elara Protocol utilizes several key parameters to manage risk, ensure solvency, and optimize the lending and borrowing experience. Understanding these parameters is crucial for users interacting with the protocol.
Collateral Factor
The collateral factor defines the maximum borrowing capacity against a particular asset. For example, if USDC has a collateral factor of 80%, and its price is $1, users can borrow up to $0.80 for every $1 of USDC supplied as collateral.
Reserve Factor
The reserve factor is the percentage of borrower's interest that accrues to Elara's reserve. For instance, a reserve factor of 20% means that 20% of the interest paid on an asset goes to Elara's reserve, enhancing protocol sustainability.
Close Factor
The close factor determines the maximum amount that can be liquidated in a single transaction. A 50% close factor means that up to 50% of a liquidatable account's borrow can be repaid in one liquidation transaction.
Liquidation Incentive
The liquidation incentive is the bonus given to liquidators for performing liquidations, ensuring protocol solvency. An 8% liquidation incentive means liquidators receive an extra 8% of the borrower's collateral value during liquidation.
Parameter Details by Asset
Note: These parameters are subject to change based on market conditions and governance decisions. Users should always refer to the most up-to-date information on the Elara platform.
Last updated