Risk Parameters
The risk parameters of our leveraged yield farming product.
To guarantee solvency at all times, Kalmy App uses excess collateral and a liquidation system for closing positions in danger of becoming undercollateralized. Unlike many DeFi protocols of previous generations, Kalmy App uses an aggregated liquidation service with one central smart contract entry point rather than resorting to liquidators having to track individual endangered positions.
The risk framework uses two groups of settings: system-wide (Global Parameters) and individual (Pool-Specific Parameters).
Global Parameters
There are five parameters that apply to every position in the Leveraged Yield Farming system. They set the rules for borrowing from the bank and repayments or liquidations for debts to the bank. The parameters are shown in the table below:
Name
Value
Function
Description
Minimum Debt Size
0.5 BNB
minDebtSize()
The minimum borrowing amount (if borrowed any) for opening a position.
Borrowing Interest Rate
0%-200%
getInterestRate()
Borrower’s interest rate to be paid, accrued per second.
Reserve pool rate
20%
getReservePoolBps()
Portion of borrower’s interest to be stored in bank’s reserve.
Liquidation bonus
5%
getKillBps()
Portion of position value the liquidator gets as an incentive to liquidate positions at risk.
Reinvest Reward Bounty
3%
Inside Goblin contract
Incentive reward for bounty hunters calling
reinvest function.
Pool-specific Parameters
Liquidity borrowed from the Bank can be used in a number of yield farming pools, each with its own liquidity and asset type or asset pair. The risk framework has to account for different volatility levels between assets and pools to guarantee timely liquidation for the loan to stay solvent. This is why debt ratio and liquidation ratio have to be individual, per the tables below:
Name
Value
Function
Description
Max Debt Ratio
Depends on the pool (see below)
workFactor()
Maximum debt ratio when opening/adjusting a position must satisfy.
Liquidation Debt Ratio
Depends on the pool (see below)
killFactor()
Debt ratio threshold. If exceeded, anyone can liquidate the position.
ML= Maximum leverage
MDR = Maximum debt ratio
LDR = Liquidation debt ratio
Two-sided farms with BNB collateral:
Platform
Pool
Info
aBNBc-BNB
ML: 6x
MDR: 86.5%
LDR: 96.5%
CAKE-BNB
ML: 4x
MDR: 80%
LDR: 90%
BTC-BNB
ML: 4x
MDR: 80%
LDR: 90%
BUSD-BNB
ML: 4x
MDR: 80%
LDR: 90%
GAL-BNB
ML: 3x
MDR: 70%
LDR: 80%
ALICE-BNB
ML: 3x
MDR: 70%
LDR: 80%
MBOX-BNB
ML: 3x
MDR: 70%
LDR: 80%
DOGE-BNB
ML: 3x
MDR: 70%
LDR: 80%
XVS-BNB
ML: 3x
MDR: 70%
LDR: 80%
AXS-BNB
ML: 3x
MDR: 70%
LDR: 80%
USDT-BNB
ML: 4x
MDR: 80%
LDR: 90%
BUSD-BNB
ML: 4x
MDR: 80%
LDR: 90%
BTC-BNB
ML: 4x
MDR: 80%
LDR: 90%
LINK-BNB
ML: 4x
MDR: 80%
LDR: 90%
XRP-BNB
ML: 4x
MDR: 80%
LDR: 90%
SFP-BNB
ML: 3x
MDR: 70%
LDR: 80%
ADA-BNB
ML: 3x
MDR: 70%
LDR: 80%
UNI-BNB
ML: 3x
MDR: 70%
LDR: 80%
BSW-BNB
ML: 3x
MDR: 70%
LDR: 80%
Two-sided farms with BUSD collateral:
BUSD-USDT
ML: 6.5x
MDR: 88%
LDR: 98%
BUSD-TUSD
ML: 6x
MDR: 86.5%
LDR: 96.5%
BUSD-USDC
ML: 6x
MDR: 86.5%
LDR: 96.5%
BUSD-ALPACA
ML: 4x
MDR: 80%
LDR: 90%
BUSD-CAKE
ML: 4x
MDR: 80%
LDR: 90%
BUSD-WOM
ML: 4x
MDR: 80%
LDR: 90%
BUSD-HIGH
ML: 3x
MDR: 70%
LDR: 80%
BUSD-RACA
ML: 3x
MDR: 70%
LDR: 80%
BUSD-CHR
ML 2.5x
MDR: 62.5%
LDR: 70%
BUSD-USDT
ML: 6x
MDR: 86.5%
LDR: 96.5%
BUSD-HAY
ML: 6x
MDR: 86.5%
LDR: 96.5%
Single-sided farms with BNB collateral:
BNBx
ML: 6x
MDR: 86.5%
LDR: 96.5%
aBNBc
ML: 6x
MDR: 86.5%
LDR: 96.5%
stkBNB
ML: 6x
MDR: 86.5%
LDR: 96.5%
BUSD
ML: 4x
MDR: 80%
LDR: 90%
Single-sided farms with BUSD collateral:
USDT
ML: 6x
MDR: 86.5%
LDR: 96.5%
DAI
ML: 6x
MDR: 86.5%
LDR: 96.5%
USDC
ML: 6x
MDR: 86.5%
LDR: 96.5%
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