Larix
  • Who is Larix
  • Community
  • Roadmap
  • Product Update
  • Monthly Report
    • Larix Monthly Report [Oct]2021
    • Larix Monthly Report [Nov]2021
    • Larix Monthly Report [Dec]2021
    • Larix Monthly Report [Jan ]2022
    • Larix Monthly Report [Feb] 2022
    • Larix Monthly Report [Mar] 2022
    • Larix Monthly Report [April] 2022
    • Larix Monthly Report [May] 2022
  • FAQ
    • General FAQ
    • Raydium LPs FAQ
    • Error Explanation
    • Trouble shooting
    • Liquidation
  • PROTOCOL
    • Mainnet
      • Main Pool
        • Addresses
      • Lending Launchpad
        • Bonfida Pool
        • xSOL Pool
        • LARIX Pool
        • Step Pool
        • Stepn Pool
    • Devnet
  • Larix Guide
    • Step 1: Get Wallet
    • Step 2: Connect Wallet
    • Step 3: Deposit
    • Step 4: Borrow
    • Step 5: Repay
    • Step 6: Withdraw
    • Step 7: Claim rewards
  • Interest Rate Model
  • Mathematics
    • APY
    • Mining
    • Price Feed
    • Obligation Health
  • Function
  • Design and Principle of the Liquidation
  • Access Controls
  • Security
    • Bug Bounty Reward
    • Audit
    • Oracles
  • Tokenomics
    • LARIX
    • Buy LARIX
      • b30LARIX
    • Larix Distribution
    • LARIX Token Distribution Rate Model
  • Risk
    • Risk Framework
    • Asset Risk
    • Liquidity Risk
    • External Audits & Analysis
  • API
    • Instruction
    • Function
    • Query
      • Logo
      • State
      • Reserve
      • Mining
      • Obligation
      • SDK
Powered by GitBook
On this page
  • Supply
  • Borrow
  • Liquidation
  • How to avoid liquidation?
  • Distribution

Was this helpful?

Function

Supply

By Supplying crypto tokens, stablecoins, and synthetic assets, users can earn dynamic APY interest. The supply amount is flexible, and you can keep supplying based on the low transaction fees on Solana and Quick withdrawals in 0.001s.

Borrow

After supplying and earning APY on assets, you can then borrow against those assets, as the supplied assets are used as collateral for borrowing. For example, earn APY on your BTC or ETH and additionally use it as collateral to borrow USDC or USDT.

Liquidation

You should remember that 'borrow_value' is always less than 'supply_value' because of the collateral factor. Once 'borrow_value' => 'borrow_limit' (borrow_limit=supply_value*collateral factor), the account will trigger liquidation, and the loan will be repaid.

How to avoid liquidation?

You can choose a small 'collateral factor' (collateral factor=borrow_value/supply_value), the maximum collateral factor is 85%. Small CF means less ‘borrow_value’, but higher safety.

Distribution

By supplying/borrowing on Larix Lending Protocol, users can get ‘LARIX’ token rewards, in addition to APY interests. Different token pools have different mining distributions divided by dynamic TVL markets.

PreviousObligation HealthNextDesign and Principle of the Liquidation

Last updated 3 years ago

Was this helpful?