Introduction
Last updated
Last updated
Demiourgos.Holdings™ is proud to introduce an innovative lending system intricately linked to the performance of its proprietary USDC-OURO Pool on the Vesta.Finance™ Decentralized Exchange.
The lending system will be used only with stable coins, GSC and/or USDC being as potential candidates. For the sake of exemplification the description below is done using both Tokens.
This lending system involves the utilization of both GSC/USDC and vGSC/vUSDC. When GSC/USDC is deposited into the Lending Pool, it generates vGSC/vUSDC—a stable coin with interest-bearing properties. The index of vGSC/vUSDC increases with each GSC/USDC earned as interest by the lending platform. This interest-driven increment in the index, referred to as the Lending Index [LI], is a pivotal aspect of our unique lending mechanism.
Any arbitrary amount of GSC/USDC can be deposited into the lending [DLP], and this generates for the depositors an amount of vGSC/vUSDC at the current Lending Index [LI] at the time of the deposit. However depositors must adhere to the vUSDC Redemption Terms. When the Platform borrows GSC/USDC the Lending Index [LI] drops, and when the Platform cashes in GSC/USDC, the Lending Index [LI] increases. While there are no restrictions for how high the Lending Index [LI] can increase, there are restrictions for how low the Lending Index [LI] can decrees. This is called the borrowing Threshold.
Initial borrowing Threshold is set at 60%. This means, through borrowing, the Lending Index [LI] can decrease to at most 0.6. This is subject to further modifications and in case the need arises can be later on lowered.
The maximum amount that can be borrowed by the Platform is given by the following formula:
This means, if there is 500 GSC in the Lending Protocol and only a total supply of 160 VGSC exists (making for a Liquid Index of 3.125), the maximum amount that could be borrowed would be:
MaxGSC = 500 - 160 * 0.6 = 404 GSC could be borrowed.
If the borrowing Threshold would be lowered to 0.2, a higher maximum amount could be borrowed:
MaxGSC = 500 - 160 * 0.2 = 468 GSC could be borrowed.
In the initial stages, the Lending Platform will be launched with the following restrictions:
Only the Company will be able to add GSC/USDC Liquidity into the Platform.
ESDT vGSC/vUSDC cannot be redeemed. Redemption will be possible by converting vGSC/vUSDC to rGSC/rUSDC at a 1:1 ratio. rGSC/rUSDC represents the Meta-ESDT variant of vGSC/vUSDC, and it is this Meta-ESDT Token Variant that will be direct redeemable. Conversion to rGSC/rUSDC will be initially offline, therefore the Redemption Mechanism will initially be offline.
10% of the interest accrued is taken as Platform Fee by the Lending Protocol. The rest of 90% is deposited into the DLP increasing the vGSC/vUSDC Lending Index [LI].
