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.

Borrowing interest rate details.

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
PancakeSwap	aBNBc-BNB	ML: 6x MDR: 86.5% LDR: 96.5%
PancakeSwap	CAKE-BNB	ML: 4x MDR: 80% LDR: 90%
PancakeSwap	BTC-BNB	ML: 4x MDR: 80% LDR: 90%
PancakeSwap	BUSD-BNB	ML: 4x MDR: 80% LDR: 90%
PancakeSwap	GAL-BNB	ML: 3x MDR: 70% LDR: 80%
PancakeSwap	ALICE-BNB	ML: 3x MDR: 70% LDR: 80%
PancakeSwap	MBOX-BNB	ML: 3x MDR: 70% LDR: 80%
PancakeSwap	DOGE-BNB	ML: 3x MDR: 70% LDR: 80%
PancakeSwap	XVS-BNB	ML: 3x MDR: 70% LDR: 80%
PancakeSwap	AXS-BNB	ML: 3x MDR: 70% LDR: 80%
Biswap	USDT-BNB	ML: 4x MDR: 80% LDR: 90%
Biswap	BUSD-BNB	ML: 4x MDR: 80% LDR: 90%
Biswap	BTC-BNB	ML: 4x MDR: 80% LDR: 90%
Biswap	LINK-BNB	ML: 4x MDR: 80% LDR: 90%
Biswap	XRP-BNB	ML: 4x MDR: 80% LDR: 90%
Biswap	SFP-BNB	ML: 3x MDR: 70% LDR: 80%
Biswap	ADA-BNB	ML: 3x MDR: 70% LDR: 80%
Biswap	UNI-BNB	ML: 3x MDR: 70% LDR: 80%
Biswap	BSW-BNB	ML: 3x MDR: 70% LDR: 80%

Two-sided farms with BUSD collateral:

Platform
PancakeSwap	BUSD-USDT	ML: 6.5x MDR: 88% LDR: 98%
PancakeSwap	BUSD-TUSD	ML: 6x MDR: 86.5% LDR: 96.5%
PancakeSwap	BUSD-USDC	ML: 6x MDR: 86.5% LDR: 96.5%
PancakeSwap	BUSD-ALPACA	ML: 4x MDR: 80% LDR: 90%
PancakeSwap	BUSD-CAKE	ML: 4x MDR: 80% LDR: 90%
PancakeSwap	BUSD-WOM	ML: 4x MDR: 80% LDR: 90%
PancakeSwap	BUSD-HIGH	ML: 3x MDR: 70% LDR: 80%
PancakeSwap	BUSD-RACA	ML: 3x MDR: 70% LDR: 80%
PancakeSwap	BUSD-CHR	ML 2.5x MDR: 62.5% LDR: 70%
Biswap	BUSD-USDT	ML: 6x MDR: 86.5% LDR: 96.5%
Helio	BUSD-HAY	ML: 6x MDR: 86.5% LDR: 96.5%

Single-sided farms with BNB collateral:

Platform	Pool	Info
Wombat	BNBx	ML: 6x MDR: 86.5% LDR: 96.5%
Wombat	aBNBc	ML: 6x MDR: 86.5% LDR: 96.5%
Wombat	stkBNB	ML: 6x MDR: 86.5% LDR: 96.5%
Wombat	BUSD	ML: 4x MDR: 80% LDR: 90%

Single-sided farms with BUSD collateral:

Platform	Pool	Info
Wombat	USDT	ML: 6x MDR: 86.5% LDR: 96.5%
Wombat	DAI	ML: 6x MDR: 86.5% LDR: 96.5%
Wombat	USDC	ML: 6x MDR: 86.5% LDR: 96.5%