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Secure and stable investment return.
Please make sure to read the following chapters before starting:
The first step is to use mole's deposit. For example, you deposite ETH. Mole will give you a deposit certificate mETH, which records Mole owe you debt. You can use mETH to get back principal ETH you deposited and get deposit interest at the same time.
The income of deposit is reflected by the ratio between ETH and mETH. For example, when you first deposit, 1 mETH = 1.05 ETH. If your deposited ETH worth $1000, you can get 1000/1.05=952.38 mETH.
Mole lend ETH to the leveraged yield farming. After the borrower repaid the interest, Mole accumulate the interest into the ratio of mETH to ETH. For example, 1 mETH = 1.15 ETH. At this time, if you redeem ETH with mETH, you can get 952.38x1.15=1095.23 ETH. The ratio is compound accumulated.
Lending interest = Borrowing Interest * Utilization * (1 - Borrow Protocol Fee)
In Mole protocol, users borrow from the savings pool to leverage in the leveraged yield farming. Therefore, these borrowers need to pay the borrowing interests.
So, how to calculate the borrowing interest rate? A simple idea: when the funds in the savings pool are in short supply, raise the borrowing interest rate, encourage users to deposit and curb excessive borrowing; When the savings pool provides too much, it lowers the borrowing interest rate and encourages more borrowing.
The borrowing interest rate should change when utilization of funds changes. Mole uses the following function as the borrowing interest rate, which will increase with the increase of the utilization. When the utilization ratio exceeds 90%, it will rise sharply, encouraging more users to deposit in the savings pool.
Borrowing interest = a * utilization + b
The fund utilization ratio is an indicator used to measure the fund utilization efficiency in the savings pool. The denominator is the deposit, and the numerator is the amount of loans lent to leveraged yield farming.
Utilization = Loans / Savings Deposit * 100%
The borrowing protocol fee is used to support the long-term development of the mole. But don't worry, the fee charge is very low. Please go to the following page to view the fee details:
When users of the leveraged yield farming borrow from the savings pool, they cannot withdraw the loans and transfer it. Instead, they use the loans inside Mole. When the position of the leveraged yield farming decreases and reach the liquidation threshold, Mole will liquidate the position in time and get your tokens back to ensure the safety of your deposits. It is very safe and reliable.
The liquidation of withdrawal is T+0. You can withdraw anytime you like.
If the loan market is very hot, the funds in the savings pool may be all borrowed out. When a savings user wants to withdraw, it is theoretical possible that cannot withdraw immediately. But this possibility is actually very small, because the borrowing interest goes up with utilization and become extremely high. It will attract funds to deposit. After all, who can refuse the super high-yield steady income.
The savings and staking have the simplest operating steps and the highest security. You can start investing in a very secure environment!
Enter "Saving" and select the token you want to deposit. You can get the corresponding mToken as a proof of deposit.
You can withdraw T+0, anytime you like.