Multi-collateral stability borrowing service
Furion Money Market provides lending and borrowing services for various assets on-chain. Users can lend their NFTs(in F-X tokens) and ERC-20 tokens to earn income in the form of interest, or use their assets as collateral for borrowing. Based on the peer-to-pool model, users can make the greatest use of the value of their assets, while fractional lending is implemented.
To borrow on Furion, users should deposit their tokens as collateral first. Various kinds of assets are supported, and after depositing tokens, one may receive cToken(e.g., ETH to cETH), which tracks their underlying assets and interests owned on a block basis. The ratio between token and cToken is set to be 1:50.
When burning cToken back for underlying assets, users can get the original token based on the given exchange rate formula.
The Borrow Limit indicates the maximum amount you can borrow based on the collateral value you have deposited and the available liquidity.
Collateral Factors range from 0 to 0.9 based on the tokens' price volatility and liquidity status, and the price for calculating Collateral Value comes from DEX's TWAP price.
Collateral factors reflect the risk of the asset that’s being used as collateral. An illiquid collateral asset can be exploited by causing a price surge to allow a malicious user to borrow an inflated amount of tokens without an incentive to return them.
Thanks to the aggregated liquidity, instant trading, and fractional lending implemented on Furion, more assets are supported to enjoy the lending service, but still we make a whitelist at the first launch and set collateral factors shown below.
Collateral factor /LTV
Collateral factors for other common ERC-20 assets: