Lending Pool

The Lending Pool Contract manages all deposits, debts, and interest rate calculations for all registered assets. Accounts can easily deposit owned assets by calling the deposit function in the contract that transfers funds from the user to the contract. The protocol allows accounts to configure less risky assets as collateral to secure any potential debts. An account can borrow deposited funds at any time, provided that they pledge a sufficient amount of collateral and the asset is borrowable. The amount that can be borrowed is determined by the asset prices and two specific factors for each asset, the Collateral Coefficient (smaller than 1) and the Debt Coefficient(greater than 1). These coefficients depend on the market rule an account has chosen. The Collateral Power of an account is calculated as the sum of deposited collateral values multiplied by the Collateral Coefficient, while the Debt Power is determined as the sum of borrowed asset values multiplied by the asset’s borrow coefficient. To ensure safety for all parties, the account must manage the account's collaterals and debts to not allow for his Debt Power power to exceed Collateral Power or account collateral will be exposed for liquidation. The Abax Lending Protocol ensures the safety of accounts’ positions by allowing anyone to monitor for price fluctuations that could result in liquidation. Liquidation of a given account occurs when the account’s Collateral Power drops below the account’s Debt Power. In such cases, an account’s position is considered undercollateralized, and any party has the opportunity to repay the debt in exchange for the collateral. The collateral received by the liquidator is equal in value to the repaid debt, plus an additional liquidation penalty paid by the liquidated account.