ABC Finance
Lending & Borrowing
What Can ABC Protocol (Phase1) Do For You?
ABC allows you to:
● Supply cryptocurrencies and stable coins and earn a variable APY for providing liquidity the protocol that is secured by over-collateralized assets.
● Borrow cryptocurrencies and stable coins with no credit check and fast origination directly on Binance Smart Chain.
Supplying Assets
ABC Finance users may supply various supported cryptocurrencies onto the platform, which can be used as collateral for loans, supply liquidity and earn an APY. Supplying assets such as cryptocurrencies to ABC Finance gives the users the ability to participate as a lender while maintaining the security of collateral in the protocol. Users will earn a variable-based interest rate depending on the yield curve utilization of that specific market. All user assets are pooled into smart contracts so that users can withdraw their supply at any time, given that the protocol balance is positive. Users who supply their cryptocurrency or digital asset to ABC Finance will receive a abcToken, such as abcBTC, which is the only token that can be used to redeem the underlying collateral supplied. This will enable users to use these tokens to hedge against other assets or move them into cold storage wallets that support Binance Smart Chain.
Borrowing Assets
Users who want to borrow any of the supported cryptocurrencies, stable coins from ABC Finance must pledge collateral that will be locked on the protocol. These assets must be over collateralized and will enable up to 90% of that collateral value borrowed.
Once these assets are supplied, you can borrow based on the collateral ratio of the asset. Typically collateral ratios are set anywhere from 35% to 90%. For example, if Bitcoin has a collateral value of 90%, that means you can borrow up to 90% of the value of your BTC. If the user has $100,000 in BTC supplied to the ABC protocol, that means they can borrow up to 90% of the value. However, if a user’s collateral value drops below 90%, or whichever collateral ratio percentage that a certain asset has, it could cause a Liquidation event, which will be discussed later.
Users will have a compound interest rate that will be applied per block on these assets and have no monthly payment obligations. To return the collateral, the user must pay off their origination balance and compounded interest back to the protocol.
Market interest rates are determined by the specific yield curve that is designated in the contract. Depending on the market utilization, it will determine what the interest rate will be for that specified
Last modified 1mo ago
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