Protocol
RelDeFi is a fixed-rate, fixed-term lending protocol based on the Yield Protocol paper. The protocol is implemented in a system of BNB smart contracts.
Last updated
RelDeFi is a fixed-rate, fixed-term lending protocol based on the Yield Protocol paper. The protocol is implemented in a system of BNB smart contracts.
Last updated
If you need to know something about RelDeFi, the protocol issues synthetic assets called RelDeFi, which track an arbitrary underlying asset.
Let's take an example of RelDeFi with the symbol "$RLDF. This is a synthetic asset that tracks the Relcko Token. Borrowers mint $RLDF by depositing $RLKO collateral, Lenders sell their $RLDF in exchange for USDT. After expiration, any holder of $RLDF can redeem the synthetic asset in exchange for USDT.
Unlike most decentralized finance protocols, interest rates on RelDeFi are not controlled by the protocol developer. It is the open market that dictates the interest rate that participants pay or receive.
When we issue an $RLDF, we also create a RelDeFi Pool for the $RLKO and the underlying. Anyone can provide liquidity to this pool and mint $RLDF. The amount of $RLDF bought or sold in the pool is used in calculating the effective interest rate.
Say you are interested in lending 10,000 $USDT on RelDeFi. You open the RelDeFi interface and you get quoted an interest rate of 5%. Supposing the expiration date is 1 year into the future, you will receive ~10,500 USDT in exchange for your 10,000 USDT at maturity. Thus, if you hold on to your USDT tokens for 1 year, you will be able to redeem it for 10,500 USDC.
Similar to other decentralized finance protocols, RelDeFi has over-collateralization rules. That is, borrowers must be over-collateralized before they can mint $RLDF.
While high-profile assets like $RLKO. RelDeFi will use the industry standard of 150%, the margin requirement for arbitrary collateral depends on several factors:
Quality of collateral asset
How reliable is the Oracle price feed is
Market conditions
Users can borrow $RLDF tokens to purchase real estate property from Relcko against their real estate property used as collateral. They can thus obtain a RelBank-backed loan without any Paperwork.
Users pay variable interest rates that accrue for the duration of their loan, which often change unpredictably through governance. When using Liquity, users pay a one-time borrowing fee, determined upfront as a percentage of the drawn amount. All interests are then transferred to RelDefi lenders.
Most numbers are represented as a "0x89x18" (unsigned integers scaled by 10^18) to perform math operations at a high enough level of precision. Thus RelDeFi numbers have 18 decimals of precision, similar to how BNB is equal to 10^18 wei.
The RelDeFi protocol uses the fixed-point math library to represent fractional quantities with sufficient precision. We need this library, especially in the RLDF but it's also helpful in calculating account liquidities in the BalanceSheet contract.
