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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
​
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
Text
Text
​
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%