Borrowing

2024-11-28

Gyrowinʼs borrowing platform is designed to work seamlessly with other utilities within the ecosystem, such as prediction markets and other future utilities. This integration creates a unified user experience and unlocks unique opportunities:

Leverage Across Utilities: Borrow funds directly on the platform and use them to participate in prediction markets or other Gyrowin services.

Borrow Within the Platform

Gyrowin enables users to borrow assets without relying on external services, reducing friction and providing immediate access to liquidity.

Efficiency: Borrowed funds remain within the platform, allowing for faster and more cost-effective transactions.
Utility Across Use Cases: Use borrowed funds to place predictions, participate in governance, or access future utilities, making Gyrowin a one-stop solution for all financial needs.

Supported Assets & Configuration

Users can borrow supported assets by depositing collateral. The borrowing capacity depends on the collateral value and the Loan-to-Value (LTV) ratio. If the loan exceeds safe thresholds, it may be subject to liquidation.

SUI

Borrow Fee: 0.3% (30 BPS)
Borrow Limit (Quantity): 5,000,000 SUI
Borrow Limit (USD): $15,000,000

USDT, USDC

Borrow Fee: 0.2% (20 BPS)
Borrow Limit (Quantity): 15,000,000 USDC
Borrow Limit (USD): $15,000,000

Example - Borrow Weight

If you borrow 2 SUI at $3 each, with a borrow weight of 1, your effective borrowed value is:

2 * $3 * 1 = $6

This weighted amount is used to calculate LTV and liquidation risk.

Glossary

BPS (Basis Points): 1% = 100 BPS. So 30 BPS = 0.3%
Open LTV Percent: Maximum allowable loan amount based on collateral (before liquidation is triggered).
Close LTV Percent: The threshold at which liquidation starts.
Max Close LTV Percent: Absolute maximum limit before bad debt risk increases significantly.
Borrow Weight: A multiplier applied to the borrowed asset value, used in risk calculation.
Liquidation Bonus: Extra value received by liquidators as incentive.
Protocol Liquidation Fee: Fee retained by GyroWin when liquidation occurs.

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Borrow Within the Platform

Gyrowin enables users to borrow assets without relying on external services, reducing friction and providing immediate access to liquidity.

Efficiency: Borrowed funds remain within the platform, allowing for faster and more cost-effective transactions.

Utility Across Use Cases: Use borrowed funds to place predictions, participate in governance, or access future utilities, making Gyrowin a one-stop solution for all financial needs.

Supported Assets & Configuration

SUI

Borrow Fee: 0.3% (30 BPS)

Borrow Limit (Quantity): 5,000,000 SUI

Borrow Limit (USD): $15,000,000

USDT, USDC

Borrow Fee: 0.2% (20 BPS)

Borrow Limit (Quantity): 15,000,000 USDC

Borrow Limit (USD): $15,000,000

Example - Borrow Weight

If you borrow 2 SUI at $3 each, with a borrow weight of 1, your effective borrowed value is:

2 * $3 * 1 = $6

This weighted amount is used to calculate LTV and liquidation risk.

Glossary

BPS (Basis Points): 1% = 100 BPS. So 30 BPS = 0.3%

Open LTV Percent: Maximum allowable loan amount based on collateral (before liquidation is triggered).

Close LTV Percent: The threshold at which liquidation starts.

Max Close LTV Percent: Absolute maximum limit before bad debt risk increases significantly.

Borrow Weight: A multiplier applied to the borrowed asset value, used in risk calculation.

Liquidation Bonus: Extra value received by liquidators as incentive.

Protocol Liquidation Fee: Fee retained by GyroWin when liquidation occurs.