FAQ
What is RelDeFI Protocol?
RelDeFI Protocol is a trusted decentralized finance lending and borrowing protocol deployed on the BNB Chain. Initially launched in 2024, it combines the Maker's $RLDF minting facility and the algorithmic money markets developed by Compound, providing a simplified user experience and core capabilities in a single application.
How do I interact with RelDeFI Protocol?
Interacting with RelDeFI is straightforward. Supply your Minted $RLDF and the amount to start earning interest. Additionally, Once you have supplied your assets, RelBank will lend $RLDF to its borrowers to purchase non-moveable property collateral with RelBank. Any interest earned from supplying assets to the borrowers will be transferred to its leaders by RelBank.
Where are my supplied funds($RLKO) stored?
Your supplied funds are stored in a smart contract on the BNB Chain. The contract's code is public, and open-source, and will be formally verified and audited by external auditors. You can stake your funds and receive RelDeFI Tokens ($RLDF) representing your stake. $RLDF are as freely tradable as any other cryptographic asset on BNB Chain.
Is there any risk?
No platform can be considered entirely risk-free. Risks associated with RelDeFI include smart contract risk and liquidation risk. However, every possible step has been taken to minimize these risks, including making the protocol code public and conducting thorough audits.
What are the key areas RelDeFI Protocol aims to improve?
RelDeFI Protocol focuses on improving three main areas:
Risk Management: Prioritizing risk management, RelDeFI introduces new features like Isolated Pools and more sophisticated risk parameters.
Decentralization: The governance model has been enhanced by introducing fast-track VIPs, role-based access control, and a fine-grained pause mechanism.
User Experience: The latest version offers an enhanced user interface, a more effective reward system, and isolated lending. Future releases for V1 will feature stable rate borrowing and the RelDeFI Prime Soulbound Token, all aimed at providing a smooth user experience.
How do I pay my interest to borrow APY?
The interest is paid on the asset you borrow. It is reflected in your borrow balance. And you can pay interest to RelBank a traditional way.
Is the protocol audited? Any public audit reports?
No, the protocol is submitted to audit by three independent auditors. We will share more details about the audit soon.
Key Terms
RelDeFI
Refers to our strongest supporters who are proactive in contributing to our community. RelDeFI members are our OGs who enjoy special privileges.
Holding
Refers to users who repeat the cycle of Borrowing and Depositing in order to maximize the effect of looping. This allows users to maximize their liquidity mining efforts and mine more $RLDF
Whitelist
Refers to wallet addresses that are qualified for events/rewards as they satisfy certain conditions that are pre-set.
Liquidation
Deposited assets are liquidated when the utilization rate increases beyond 100%. It happens when the dollar amount of borrowing is larger than the dollar amount of deposits. Therefore, the protocol has to liquidate deposits to ensure that other depositors are not negatively impacted.
What is yield farming?
Yield farming is an innovative DeFi concept where users stake or lend their crypto assets, providing liquidity to receive returns.
Where does my yield come from?
That’s a great question! You should always try to understand where the yield comes from in each DeFi project.
In RelDeFI Finance, the source of your yield will depend on how you participate in the protocol:
As a lender, your yield comes from:
Interest paid by borrowers to open leveraged yield farming positions (Interest rate is based on lending pool utilization).
Incentive rewards are paid in tokens of platform partners (in featured pools).
Interest is paid by borrowers when they purches Non-moveable physical properties from RelBank.
As a yield farmer, your yield comes from:
Yield farming incentive rewards from the $RLKO, if applicable - i.e. CAKE tokens from PCS.
Underlying trading fees of the pool - i.e. trading fees from the PancakeSwap pools.
Is RelDeFI at risk of a flash loan attack?
No, RelDeFI is only EOA which means it does not allow flash loans to interact with the protocol. This makes flash loan attacks impossible.
Why can't I withdraw my funds from the lending pool?
The lending pool is there for people to borrow funds. That's why you're earning yields from it. So when people are borrowing your funds in active positions, how could you withdraw them? If you're unable to withdraw, then the utilization of the lending pool is too high, which means a high percentage of the funds are being borrowed at the moment. You can try to lower the amount you attempt to withdraw and it may succeed. However, the inability to withdraw is also a temporary issue.
The interest rate model exists to stabilize utilization levels. At above 90% utilization, the interest rate rises at a steep rate, making borrowing more expensive and lending more lucrative. This inevitably leads to borrowers closing their positions and more lenders coming in. When that happens, the utilization will drop to an optima where everyone can still profit, but lenders can withdraw without issue. This should not take longer than hours in most cases, and if something isn't working and the utilization rate remains high for a few days in a row, the team will step in to change the interest rate model to lower utilization.
We're also optimizing one step at a time to always have the most efficient interest rate model, allowing everyone to profit while lenders can also withdraw with ease
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