User flow for borrowers

Asset borrowers

Omm allows users to borrow from the protocol. This market is similar to the supplier market in that interest rates will be based on the supply and demand of each specific asset. Furthermore, each asset will have 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 launch, Omm will support ICX, USDS (Stably USD), and IUSDC (wrapped USDC). Each of these markets will have a max LTV of 0.5, or said another way, a collateralization ratio of 200%. However, users are recommended to start with a lower LTV of 0.33 (half the liquidation threshold) 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 will receive dTokens reflective of the amount of the borrowed assets, and will 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 will be added through governance rights given to OMM holders. For more information, see the token economics section.

Use case for borrowers

Users have the ability to add leverage or cover expenses without selling or repositioning their portfolios. For example, a user can leverage their ICX holdings to purchase more ICX, or transfer Stably USD to their bank account to finance unforeseen expenses.
Alternatively, traders can take short positions to profit from declines in asset prices. Under a falling price scenario, a trader can borrow an asset, sell it immediately, and retire their debt at a cheaper price after the price falls.
Last modified 2mo ago