DLP - Demiourgos Lending Platform

Loan Examples

Example of USDC Functionality in Loans and Payments:

For a more comprehensive understanding of how USDC operates in conjunction with loans and payments, consider the following illustrative example:

Scenario: Daily Loan

Alice opts to borrow 150 USDC for a duration of 13 days, selecting the Daily Payment Plan Loan Variant. Notably, she has not achieved any completed Elite Account Tiers. Calculating the daily interest rate using the relevant formula, her daily interest rate:

[r] = 0.32416% per day.

Alice is required to make payments of 11.801977 USDC at regular intervals, with her chosen payment interval being 24 hours (equivalent to a day). Each payment consists of two components: the Principal part and the Interest part. The payment plan, denoted as {Principal Interest}, unfolds as follows:

  1. {11.315737 0.486240}

  2. {11.352419 0.449558}

  3. {11.389219 0.412758}

  4. {11.426138 0.375839}

  5. {11.463177 0.338800}

  6. {11.500336 0.301641}

  7. {11.537615 0.264362}

  8. {11.575016 0.226961}

  9. {11.612537 0.189440}

  10. {11.650180 0.151797}

  11. {11.687946 0.114031}

  12. {11.725833 0.076144}

  13. {11.763847 0.038130}

In total, Alice repays 150 USDC as Principal and 3.425701 USDC as interest over the course of the loan period. This example provides a detailed insight into the breakdown of payments and showcases the meticulous calculation involved in the repayment structure.

Scenario: Monthly Loan

Bob decides to borrow 500 USDC for a duration of 4 months, opting for the Monthly Payment Plan Loan Variant. Notably, he has not achieved any completed Elite Account Tiers. By applying the relevant interest formula, the daily interest rat:

[r] = 5.02% per month.

Bob is would have to make regular payments, with his chosen payment interval set at 720 hours (approximately a month). Each payment is divided into two components: the Principal part and the Interest part. The payment plan, denoted as {Principal Interest}, unfolds as follows:

  1. {115.971430 25.100000}

  2. {121.793196 19.278234}

  3. {127.907215 13.164 215}

  4. {134.328159 6.743271}

In total, Bob repays 500 USDC as Principal and 64.285720 USDC as Interest over the 4-month loan period. This example provides a detailed breakdown of payments, offering insights into the meticulous calculation involved in the repayment structure under the Monthly Payment Plan.

Enhanced Loan Scenario with completed Elite Tier 2 Account: Monthly Payment Plan

Bob, now holding a completed Elite Tier 2 Account, decides to secure an additional 500 USDC for a 4-month period, choosing the Monthly Payment Plan Loan Variant. Prior to the commencement of Payment Intervals, he benefits from an Elite period of 2 x 25 hours, totalling 50 hours.

Let's explore two variants:

No Payment during Elite Period.

With a completed Tier 2 Elite Account, Bob experiences a reduced monthly interest rate

[r])= 4.52%, an improvement from the previous rate of 5.02%.

Additionally, his Payment Intervals extend from 720 hours to 780 hours. The Payment Plan, {Principal Interest}, unfolds as follows:

  1. {116.837048 22.600000

  2. {122.118083 17.318965}

  3. {127.637820 11.799 228}

  4. {133.407049 6.029999}

In total, Bob repays 500 USDC as Principal and 57.748192 USDC as Interest. Notably, this interest amount is slightly smaller than the interest paid by a non-Elite Account owner, showcasing the advantages of holding an Elite Tier 2 Account.

This detailed comparison provides insights into the nuanced dynamics of loan repayment structures, demonstrating the impact of Elite Account status on both interest rates and payment intervals.

With 100 USDC Payment during Elite Period.

Bob, holding a completed Elite Tier 2 Account, further refines his loan strategy by opting for a partial repayment of 100 USDC during the Elite Period. This results in a reduction of his borrowed principal from 500 to 400 USDC. The modified Payment Plan, {Principal Interest}, is structured as follows, with a reduction of the Payment Amount from 139.437048 USDC to 111.549638 USDC :

  1. {93.469638 18.080000}

  2. {97.694466 13.855172}

  3. {102.110256 9.439382 }

  4. {106.725640 4.823998}

In total, Bob repays 500 USDC (including 100 during his Elite Period) as Principal and 46.198552 USDC as Interest. This nuanced approach allows Bob to strategically reduce both the borrowed principal and the corresponding interest amount. The adaptability of the Monthly Payment Plan, coupled with Elite Tier benefits, contributes to a more tailored and efficient loan repayment structure.

Conclusion

In conclusion, Elite Accounts present a range of advantages within the Demiourgos Lending Platform:

  1. Higher limit for borrowing amount and Liquidation Threholds

    1. Higher Elite Account Tiers provide a higher limit for borrowing more Capital

    2. Higher Elite Account Tiers provide higher Weak and Strong Liquidation Thresholds.

  2. Interest Rate Reduction:

    1. (Major) Elite Account Tiers further affords borrowers a reduction in the monthly interest rate, ultimately decreasing the total interest paid over the loan duration. This reflects the financial benefits of advancing through Elite Account tiers.

  3. Extended Payment Intervals:

    1. Elite Account holders benefit from extended Payment Intervals, providing them with a more flexible and accommodating timeline for Loan repayments. This feature enhances the overall convenience of managing Loan obligations.

  4. Elite Period availability for strategic Repayments with ZERO interest.

    1. Starting with Elite Tier 1 (DEB v1) or Major Elite Tier 1 (DEB v2), Elite Account User will have an exclusive Elite Period, that scales in duration with higher (Major) Elite Account Tiers. During this exclusive Elite Period, the Loan can be payed back with ZERO interest.

    2. Notably, Elite Account holders have the unique opportunity to eliminate interest entirely if they choose to repay the loan during the Elite Period. This distinct advantage empowers borrowers to optimize their financial strategy, minimizing the overall cost of borrowing.

    3. The option for Elite Account holders to make partial repayments during the Elite Period allows for a more nuanced and tailored approach to loan management. By strategically reducing the borrowed principal before the standard payment intervals begin, borrowers can optimize interest payments and overall repayment amounts.

  5. Better Grace Period conditions

    1. Higher (Major) Elite Account Tiers offers longer Grace Periods, making easier to close the Loan successfully.

    2. Higher (Major) Elite Account Tiers also offers reduces Liquidation Fee that must be paid during the Grace Period to settle the Loan successfully.

In summary, the comprehensive analysis of loan scenarios involving Elite Accounts highlights the significant impact of account status on payment dynamics, interest rates, and overall financial outcomes. Elite Account holders enjoy a spectrum of advantages that contribute to a more optimized and cost-effective borrowing experience.

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