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Borrowing
Omm allows users to borrow from the protocol. This market is similar to the supplier market in that interest rates are based on the supply and demand of each specific asset.
Furthermore, each asset has a specific loan-to-value (LTV) threshold based on its liquidity and size. Highly-liquid and larger-cap assets will have a higher LTV, while illiquid assets will have a lower LTV.
At the time of writing, users can borrow 6 assets on Omm:
- BALN (Balance Tokens)
- bnUSD (Balanced Dollars)
- ICX
- IUSDC (ICON USD Coin; a wrapped USDC)
- OMM (Omm Tokens)
- USDS (Stably USD)
Each market has a max LTV of up to 0.5, or a collateralisation ratio of at least 200%. This means that to borrow an asset, you first need to supply at least twice the value as collateral. BALN, bnUSD, and OMM cannot be used as collateral for borrowing.
Users are advised to start with a low LTV to get used to the money market protocol.
To create fungibility throughout the protocol, each asset borrowed from a market is represented by an IRC-2 token (‘dToken’). Users receive dTokens reflective of the amount of the borrowed assets, and receive additional dTokens reflective of interest accrued when interacting with any of the Omm protocol’s smart contracts (Lend, Redeem, Borrow, Repay, Liquidation).
Additional assets can be added through governance rights given to OMM holders.
Last modified 1yr ago