Market Parameters

Market parameters control how each asset behaves within Edel Finance, defining risk levels, borrowing capacity, and liquidation thresholds.

Parameters vary between markets and can change through governance proposals.

Risk Parameters

ltv · decimal

Maximum borrowing ratio relative to collateral value. A 75% LTV allows borrowing up to 75% of collateral value.

liquidation_threshold · decimal

Point where positions become eligible for liquidation. Always higher than LTV to provide safety buffer.

liquidation_penalty · decimal

Bonus percentage awarded to liquidators, deducted from borrower’s collateral.

Supply & Borrow Controls

borrowing_enabled · boolean

Whether the asset can be borrowed

supply_cap · integer

Maximum total supply allowed for the asset

borrow_cap · integer

Maximum total borrowing allowed for the asset

Interest Rate Model

Rates adjust dynamically based on utilization using a two-slope model:

• Base Rate: Minimum rate at 0% utilization
• Slope 1: Rate increase before optimal utilization
• Slope 2: Steeper increase after optimal utilization
• Optimal Utilization: Target ratio (typically 80-90%)

Higher utilization → Higher rates → Incentivizes supply and repayments

Advanced / Additional Parameters

These additional parameters are used in protocols like Aave to provide finer control over reserve behavior:

reserve_factor · decimal

Portion of interest diverted to protocol / treasury

usage_as_collateral_enabled · boolean

Whether this asset can be used as collateral for borrowing

stable_borrow_rate_enabled · boolean

Whether borrowing at stable rate is permitted

is_active · boolean

Whether the reserve is active (open for operations)

is_frozen · boolean

Whether the reserve is frozen (no new operations)

is_paused · boolean

Whether the reserve / pool is in emergency paused state

siloed_borrowing · boolean

If true, this asset is borrowed in isolation (limited scope)

debt_ceiling · integer

Maximum allowable total debt (in this asset) under isolation / constraints

borrowable_in_isolation · boolean

Whether this asset can be borrowed under isolated collateral mode

unbacked · integer

Amount of unbacked tokens (for accounting / minting)

accrued_to_treasury · integer

Amount of interest to be minted / accrued to protocol treasury

flash_loan_enabled · boolean

Whether this asset is available to borrow via flash loans

price_oracle · address

Address of the price oracle for this reserve

interest_rate_strategy_address · address

Address of the interest rate strategy contract for this reserve

Next Steps

Current Parameters (COMING SOON)

View real-time market data

Risk Management

Position safety strategies