【BXH.COM】Announcement on BXH online Lending Module

Dear BXHers,

BXH, one-stop DeFi ecological platform, will officially launch the decentralized Lending Protocol at 09:00(UTC) October 20, 2021. The initial supported Deposit & Lending Currency is USDT and BUSD.

BXH Lending Module is a smart contract-based lending project with a modified lending protocol based on the Compound protocol, aiming to become a one-stop decentralized service platform for multiple chains to achieve pledged lending. It is currently live on the BSC mainnet and will be deployed on more chains such as HECO in the future.

Lending amount = market value of collateralized assets * collateral ratio

Collateral ratio refers to the value of the market value of the collateralized assets that can be borrowed. Because crypto asset prices are relatively volatile, different tokens correspond to different collateral ratios (refer to token collateral ratio for details).

（Update time: October 19, 2021）

Loan Utilization Rate = Actual Loan Amount / Account Available Lending Amount

When the loan utilization rate exceeds 100%, the BXH lending agreement will trigger liquidation

Maximum safe borrowing amount = available loan amount*85%

Example

Deposit collateral [10000 USDT + 10000 USD worth of BTC

Available loan amount in account = (10000 x 90% + 10000*85%) = 17500 USDT

Maximum safe borrowing amount = (17500 x 85%) = 14875 USDT, leaving $2625 as a buffer against price fluctuations.

[Note the risk] Once the percentage of loan utilisation approaches 100% the risk of being liquidated becomes greater.

Frequent Questions

1. What are the details of the lending interest rate and how to calculate the interest rate for early repayment?

[Repay as you go, no fixed term; interest rates are calculated automatically according to the automatic algorithm]

2. Is a mortgage without a loan equivalent to mining without loss?

Yes

3. If I pledge USDT and then lend HBTC, should I pay back the interest by USDT or HBTC?

[What you borrow is what you pay back, in the above example, you should pay back by HBTC]

Thanks for your support!

Website: bxh.com

Telegram: t.me/BXH_ global

Twitter: twitter.com/BXH_ Blockchain

BXH team

October 19, 2021