PsyLend Glossary

Below find commonly used terms around PsyLend. For parameters of the lending markets, visit Lending Parameters

LTV - Loan To Value ratio represents the maximum dollar normalized amount of the asset a user can borrow as a percentage of their total collateral. LTV is only applied for borrowed assets.

Min Collateral Ratio - Essentially the inverse of LTV, the Min Collateralization Ratio (C-Ratio) also represents a threshold that limits user borrowing. The C-Ratio is the sum of all collateral, divided by the sum of all debt. When a user’s account value drops below the minimum C-Ratio, they can be liquidated. The min C-Ratio that applies to a user’s account is the largest of all the asset types their account has borrowed.

Liquidation Premium - Percent of total position that will be paid out as a bonus to liquidators if they liquidate unhealthy account.

Liquidation Buffer - The liquidation buffer is the dollar amount of buffer in a user account before an account is open for liquidation. Calculate B = C/min_c_ratio to get the maximum amount a user can borrow, where C is the collateral, and min_c_ratio is the account’s maximum minimum C-Ratio across all assets. The Liquidation Buffer is B minus the amount the user has actually currently borrowed.

Manage Fee Rate - Fee on all interest rates paid by borrowers. Half of this fee goes to the protocol insurance fund to protect depositors in case of tail events. The other half goes to the PSY DAO treasury.

Loan Origination Fee - Initial fee on all funds borrowed. These funds are sent to PSY DAO treasury to fund protocol development.

Collateral Value - Each supply asset has a parameter called Collateral Value, which represents how much of its USD value is used for collateral calculations. For example, a collateral value of 100% would represent an asset's full USD value being used, while a collateral value of 0% would mean that none of the asset value will add to total user collateral.

Supply Boost - Supply boost is the total reward boost of the lending markets supply side. See Rewardsfor more details.

Borrow Boost - Borrow boost is the total reward boost of a lending markets borrow side. See Rewards for more details.

Supply APR - Supply APR is the Annual Percentage Rate of supplying a given asset to a lending market. The APR is estimated based on the current utilization of the market and is subject to fluctuations.

Borrow APR - Borrow APR is the interest rate of borrowing a given asset from a lending market. The APR is estimated based on the current utilization of the market and is subject to fluctuations.

Utilization Rate - Utilization is defined as the total borrows divided by total supplied in the lending market. See Supply & Interest Rate Calculationsfor more details.

Borrow Rate - Borrow rate is the annual interest rate for borrowing an asset from a lending market at a specific utilization rate (used for defining interest rate curves. See Supply & Interest Rate Calculationsfor more details.