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The Detailed Policy of Lending Pool Deposit
- Users can freely deposit and withdraw distributed interest earnings at any point. In addition to interest earnings, MESH reward is additionally distributed in return for users’ contribution to liquidity supply by depositing their assets, and the total rate of return on each lending pool is the summation of deposit and MESH distribution yield.
- The deposit APR (%) and MESH APR (%) of each lending pool are real-time variation values, which depend on the total deposit size of the pool, the deposit/utilization status, and the daily MESH distribution volume.
- Upon initial deposit, you must complete the transaction authorization process for each token. After the process is complete, you will be able to use the deposit service.
- Leverage farmers will pay 80% of the accumulated interest earnings to lenders, 20% will be set aside as reserves, and will later be used as a reserve fund for MESH Buyback & Burn program.
- Interest earnings based on real-time returns are accumulated on the assets deposited (principal), and withdrawals can be made, including interest earnings accumulated so far.
- MESH rewards which are distributed up to the point until the change of balance (additional deposit/withdrawal) will be automatically received in my wallet.
- The borrowing APR (%) of each lending pool depends on the utilization ratio, which indicates the number of leverage farmers borrowing assets of lenders at the moment.
- The higher deposit rate of return (the higher utilization ratio) as more assets are utilized in a lending pool. The deposit yield for each pool's utilization is as follows. (1) Utilization ratio(%)= (Total Borrowed/Pool Liquidity)*100 (2) Deposit APR(%) = Borrow APR∗(1−reserve Factor) * Leveraged yield farm will pay 80% of the accumulated interest earnings to a Lender, 20% will be set aside as reserves, and will later be used as a reserve fund for MESH Buyback & Burn. * reserve Factor = 0.2
- On the other hand, the more assets are utilized in a lending pool, the steeper the borrowing costs that leverage farmers have to pay. As such, the mechanism of interest rate formation according to the interaction between asset utilization demand (leverage farmer) and a lender induces more deposits by providing higher returns to depositors as a lending pool asset is actively utilized. However, if it is overly active (more than 90%), a high cost is set to naturally induce a return of the assets in use. (1) Borrow APR(%) = Borrowing Rate Model*Utilization * Please refer to Borrowing rate Model of each token.