Singular Protocol
  • What is Singular
    • Introduction
    • How is the Singular protocol different from other lending protocols?
    • Support Chain & Assets
    • Roadmap
  • Protocol Mechanics
    • Loan
      • Provide liquidity through wstETH
      • Multi-pool mechanism
    • Borrow
      • Process
      • Maximum loan amount
      • Interest rate
    • Repayment
    • Liquidation
    • Voucher
    • Oracle Price Feeding
  • Cross Chain
    • Cross Chain for EVM
    • Cross Chain for BTC
  • User Guide
    • Connect Wallet
    • Cross-Chain
    • Borrow ETH
      • Cross-chain mortgage NFT function
    • Lend ETH
  • Tokenomics
  • Smart Contracts
    • Contract List(SepoliaTestnet)
    • Audit Reports
  • Q&A
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  1. Protocol Mechanics
  2. Borrow

Interest rate

If the borrower's loan amount is less than Maximum loan amount, the borrowing time is T, the value of the NFT pledged by the borrower is V, the amount of the borrower's token is M. When the NFT holder pledges a NFT, the contract can automatically calculate the maximum loan amount based in the corresponding pool, as well as its interest rate. Different loan amounts have different interest rates. The specific calculation method is as follows:

When a1a_1a1​、a2a_2a2​、a3a_3a3​……ana_nan​are borrowed from n fund pairs, in each fund pair, the number of tokens borrowed should be less than the total amount of the pair , that is, ana_nan​<=xnmx_{nm}xnm​. Then a1a_1a1​、a2a_2a2​、a3a_3a3​……ana_nan​ need to meet the following constraints:

{M=a1+a2+……ana1+a1∗x1r∗TV∗x1c+a2+a2∗x2r∗TV∗x2c+……+an+an∗xnr∗TV∗xnc<1\begin{cases} M=a_1+a_{2}+……a_{n} \\ \frac {a_1+a_1*x_1r*T}{V*x_1c}+\frac {a_2+a_2*x_2r*T}{V*x_2c}+……+\frac {a_n+a_n*x_nr*T}{V*x_nc}<1\\ \end{cases}{M=a1​+a2​+……an​V∗x1​ca1​+a1​∗x1​r∗T​+V∗x2​ca2​+a2​∗x2​r∗T​+……+V∗xn​can​+an​∗xn​r∗T​<1​

Then its comprehensive interest rate is:

AverageRate=a1∗x1r+a2∗x2r+...+an∗xnrVAverageRate=\frac {a_1*x_1r+a_2*x_2r+...+a_n*x_nr}{V}AverageRate=Va1​∗x1​r+a2​∗x2​r+...+an​∗xn​r​

The solution with the lowest AverageRate, which meets all the above conditions, is the optimal solution provided by the platform. The interest rate is fixed, and the borrowers can borrow any value that is less than the maximum loan amount, and the system will find the optimal combination of liquidity token pairs that meet the above constraints with a lowest interest rate.

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Last updated 1 year ago