Meshswap
  • Introduction
  • What is MESH?
    • MESH Allocation
    • MESH Tokenomics
    • MESH Redistribution Policy
  • Get started
    • Create a Wallet
    • Add Polygon Network & Tokens
    • How to move your assets to wallet
      • Transferring MATIC
        • [Binance, Kucoin, Gate.io] How to move MATIC from CEX to Wallet 1
        • [Coinbase, OKX, Upbit, Bithumb, Coinone] How to move MATIC to Wallet 2
        • [Polygon Bridge] How to move MATIC to Wallet 3
      • How to get WETH, MATIC, USDC, USDT, DAI
      • How to get oETH, oMATIC, oUSDC, oUSDT, oDAI
      • XRP: The Quickest and easiest way to transfer your asset
      • How to get oXRP in your KuCoin wallet and deposit in Meshswap
      • How to transfer BUSD from Binance to the Polygon network
      • Transferring TON
        • Create Wallets supporting TON network
        • How to transfer TON from wallet to Meshswap
        • How to transfer TON from Huobi to the Polygon network
  • More
    • Risk & Security
    • Privacy Policy
    • Contract & Audit
    • Contact & Team
    • Events
      • Early-bird MESH Airdrop Events(End)
      • Meshswap x Kucoin Partnership Giveaway Event(End)
  • PRODUCTS
    • Swaps
    • Lend
      • How to deposit your assets on Lending pools
      • The Detailed Policy of Lending Pool Deposit
    • Yield Farm
      • How to deposit your assets on Yield Farming pools
    • Leveraged Yield Farm
      • How to deposit your assets on Leveraged Yield Farming pools
      • Detailed Policy of Leverage Farm
    • Long/Short Margin Trading
      • Open and Close Long/Short Positions
        • Open Long Positions
        • Open Short Positions
        • Close Long Positions
        • Close Short Positions
      • Long/Short Margin Trading Details Policy
    • Interest rate
    • Stake
      • How to stake MESH
      • Staking Policy
    • Pool Voting
      • How to participate in Pool Voting with vMESH
    • Ecopot
    • Drops
    • Pool Airdrop
    • Governance
      • Governance Voting Policy
  • DEVELOPERS
    • Contract
      • MESH
      • MESHswapRouter
      • MESHSwapView
      • Factory
      • Exchange
      • PoolVoting
      • VotingMESH
      • Treasury
      • Distribution
      • Governor
      • SinglePool
      • SinglePool Factory
      • PlusPool
      • PlusPool Factory
      • EcoPotVoting
      • EcoPot
    • Airdrop
      • Set Airdrop Operator
      • Start Airdop
    • EcoPot
      • Set EcoPot
      • Start EcoPot
  • Meshswap Protocol
  • Orbit Bridge
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  • Deposit, withdrawal policy
  • Terminology
  1. PRODUCTS
  2. Lend

The Detailed Policy of Lending Pool Deposit

PreviousHow to deposit your assets on Lending poolsNextYield Farm

Last updated 2 years ago

Deposit, withdrawal policy

  • 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 of each token.

Terminology

Terms
Definition

Pool Liquidity

The total number of assets deposited in lending pools expressed in dollar value, and an increase of the figure depends on yield for deposit

Total Borrowed

The total amount of assets used in a lending pool expressed in dollar value, and the figure increases with Borrow APR (%).

Total APR(%)

Expected earning rate from a pool is the sum of return from MESH distribution and return for deposit (MESH APR + Deposit APR)

Deposit APR (%)

Assets deposited by lenders are utilized as funds for leverage farmers, and interest fees paid by leverage farmers are distributed to lenders. The earnings distributed to a lender is automatically included in the quantity of my wallet deposited and can be checked in a swift manner.

MESH APR (%)

Lenders receive an amount of MESH determined by their respective deposit share ratio from the amount of daily Mesh pool distribution.

Borrow APR (%)

Assets deposited in a lending pool are utilized for leverage farm, and the leverage farmer pays the borrowing cost (interest) in return for utilizing the lending pool asset. 80% of the accumulated interest is redistributed to a lender, and 20% is used as a fund for MESH Buyback & Burn.

Withdrawable (amount)

It indicates a withdrawable amount of asset based on the current contract, which varies minute by minute with the scale of total deposit and total volume utilized.

Debt ratio(%)

The ratio of how much assets deposited in a lending pool are currently being utilized is calculated as (Total Borrowed / Pool Liquidity)*100.

Reserve for MESH buyback

20% of the interest fees paid by Leverage farmers when using a lending pool asset is raised as a Reserve Fund, which is used for MESH Buyback & Burn.

*Afterwards, the MESH Buyback quantity generated from each lending pool is automatically aggregated to determine the daily MESH distribution quantity of the pool depending on its contribution.

Borrowing rate Model