RooLend.Finance Introduction
RooLend.Finance
RooLend.Finance is a leveraged lending protocol based on smart contracts. It supports lending and borrowing of multiple tokens on Hoo Smart Chain. Users will be rewarded with ROO by deposit and borrowing on RooLend. ROO will realize the value transfer between assets within HSC ecology by supporting the staking and lending of HSC tokens.
Introduction to Service
Glossary
Below we list some common terms that will help with your understanding of our service.
Collateral Factor
The threshold of a borrow position that will be considered undercollateralized and subject to liquidation. Different collateral factors are provided on Roolend according to the liquidity and security of different assets. Please refer to “Collateral Factors of different assets” for more details.
Loan Limit
The loan limit that can be granted for the current account, and it will be increased if the user converts his deposit to collateral. For example, if a user mortgage 100U equivalent of BTC and ETH respectively, his loan limit is : 100*85% + 100*80%.
Loan Utilization Ratio
Loan Utilisation Ratio = actual loan/ loan limit*100. Please make sure your loan utilisation ratio is below 100%, otherwise it might trigger liquidation.
Health Factor
Health Factor = (1-utilization ratio) * 100%. When the Health Factor goes below 1, the loan is undercollateralized and can be liquidated.
Borrowing and Lending
After depositing assets on Roolend, users can get interests and mining yield;
Collateral enables your deposited assets to be served as collaterals, and you can borrow main mainstream assets such as WHOO, BTC, ETH, DOT, FIL, LTC, EOS, USDC, BCH, USDT, etc. Users need to pay the loan interests after borrowing the assets and can get mining yield at the same time;
The platform only charges a 0.25% handling fee of borrowing, and no handling fee is charged for deposits and withdrawals.
Interest rate model
Utilization Range
Interest rate at min. range
Interest rate at max. range
m
b
0% - 50%
0%
10%
0.2
0
50% - 90%
10%
30%
0.5
-0.15
90% - 100%
30%
120%
9
-7.8
Interest = m * utilization + bInterest=m∗utilization+b
Liquidation Rules
When the value of the asset loaned by the user > the value of the loanable asset (loan utilization rate> 100%), it will trigger liquidation and the user will be fined 5%.
At this time, any user can run the contract as the liquidation executor to liquidate borrowers whose loan utilization rate is greater than 100%.
The liquidator will help the liquidated user repay, and at the same time obtain the mortgage assets of the liquidated user, and receive a 5% reward.
The liquidator can select any asset from the account to be liquidated for liquidation.
Users need to pay attention to the following cases that lead to liquidation:
1. Rise in the price of loaned assets: When the price of loaned asset rises and the total value of the loaned assets rises, it may cause the loan utilization rate > 100%;
2. The price of mortgage assets drops: When the price of mortgage assets drops, the value of borrowable assets will become smaller, which may result in the loan utilization rate> 100%;
3. Long-term non-repayment: Users need to pay interest for borrowing. When the loaned assets and the interest to be repaid increases, it may also cause the loan utilization rate > 100%. Therefore, even if it is a single token collateralization and borrowing, liquidation will also happen as the interest increases.
Collateral Factor for Different Assets
Collateral Factor: The threshold of a borrow position that will be considered undercollateralized and subject to liquidation. Different collateral factors are provided on Roolend according to the liquidity and security of different assets.
Token
Collateral Factor
BTC
80%
ETH
75%
DOT
50%
FIL
50%
LTC
50%
EOS
30%
USDC
90%
BCH
50%
USDT
90%
Yield Farming
To supply or borrow any tokens can get ROO as yield farming income.
45% of the total ROO generated will be allocated to the asset provider, and 55% of the ROO will be allocated to the borrower. The allocation ratio will be adjusted according to fund utilization. Liquidity providers will obtain the corresponding amount of ROO based on the proportion of the LP's assets in the market. The output rate of ROO in each block is determined by the proportion of corresponding market borrowings.
** For ROO Pool, 40% of the total ROO generated will be allocated to the asset provider, and 60% of the ROO will be allocated to the borrower.
Supply and Borrow APY calculation formula
Supply APY = the number of ROO output per block in the supply market* ROO price / total value lock of supply market * 10512000
Loan mining APY =the number of ROO output per block in the borrow market*ROO price / total value lock of borrow market *10512000
(10512000 is the annual number of blocks produced by the HOO chain)
Weight of Different Pools
Asset
Weight
Hoo
5.5%
BTC
20.0%
ETH
10.0%
DOT
0.5%
FIL
0.5%
LTC
0.5%
EOS
5.0%
USDC
12.0%
BCH
0.5%
USDT
30.0%
TPT
4.0%
PUD
3.0%
BNB
1.5%
UNI
0.5%
LINK
4.0%
DOGE
1%
ROO
1.5%
Token Distribution
The total amount of ROO is 21,000,000. In the initial stage, each block will generate 2 tokens, and a block will be produced every 3 seconds. The token generation will be reduced by 9% every 30 days. When the generation is reduced to 0.2 token per block, there will be no more reduction. All tokens will be distributed in 4 years.
80% is used for yielding farming incentives;
5% is used for DAO reserve and community governance;
5% is used for marketing and promotion;
3% is for early investors;
7% is used to motivate the team's continuous development; the allocation is generated with liquidity mining.
Risk Control
Users risk control
1. Risk value reminder: Roolend will help each user calculate the loan utilization ratio. Loan utilization ratio = loaned assets/maximum loanable assets * 100%. It will trigger liquidation when token price fluctuated or interest payments increase, which cause the loan utilization ratio to exceed 100%;
2. It is recommended that users control the loan utilization ratio within 80%.
Platform risk control
1. When the user's loan utilization rate exceeds 100%, any liquidator can perform liquidation to ensure that the liquidation is completed in time and reduce the risk rate.
2. Roolend will launch a risk reserve mechanism to compensate the depositors for losses caused by the failure of timely liquidation to ensure the safety of users' assets.
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