Minterest Whitepaper v1.31
  • The Minterest Lending Protocol
  • Lending Protocol Architecture
  • Protocol Overview
  • Current DeFi Limitations
    • 1. DeFi’s New Reality
    • 2. Performance Value
    • 3. Emission Reward Structures
    • 4. External Liquidators
  • Minterest’s New Model
    • Summary
    • Fee Value Capture
    • The Network Effect
    • Platform Optimisation
    • Supply-Borrow User Experience
    • Tokenomics
  • Core Protocol Functions
  • Other Protocol Settings
    • Utilisation Limit
    • Utilisation Ratio
    • Buyback Flow
    • NFTs
  • Launch Phases
  • Governance
    • Anti Money Laundering Functionality
    • Strategic Reserve
  • Minterest Emission Rewards
    • Emission Rewards
    • Standard Rewards
    • Governance Rewards
    • NFT Rewards
    • Buyback Rewards
    • Loyalty Rewards
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  1. Other Protocol Settings

Utilisation Limit

Borrowing from the Minterest protocol is over-collateralised, meaning the amount a user can borrow is less than the amount they supply as collateral. The maximum proportion is known as the Utilisation Limit. The Utilisation Limit is always a fractional proportion of the collateral supplied and expressed as a percentage e.g. a borrower may not borrow more than 80% of their supplied collateral.

Utilisation Limits are specific for each market and are applied for each token pair in supply and borrow pools. As an example, if Bob supplies 100 USD in DAI and 100 USD in ETH, with relative Utilisation Limits of 30% and 50%, the maximum borrow value available will be the sum of 30 USD in DAI and 50 USD in ETH, or 80 USD in total.

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Last updated 1 year ago