In general, borrowers refer to users who deposit a certain asset to take a loan on another asset and receive rewards during the borrowing period. Below is an example scenario of a borrower in Balanced lending pool:
- 1.Bob deposits 100 ICX.
- 2.Bob takes a loan of 25 bnUSD.
- 3.Bob receives 5 BALN everyday as long as his borrowing position is safe.
- 4.Bob returns 25 bnUSD, takes back 100 ICX plus 35 BALN after 1 week of borrowing.
For this strategy, Optimus focuses more on reducing borrowing risks for the users by:
Continuously monitor and adjust the borrowing position in case price drops too quickly. For example, if ICX price drops too fast your borrowing position can be liquidated at a very low price, Optimus will monitor the market price for every minute and reduce the total borrowing amount to below reward threshold.
Optimus currently supports the following lending pool:
- Balanced: deposit ICX to borrow bnUSD.
- OMM: TBC.