Core Products and Features
Lending and Borrowing Services
On VAULTIFY, users can lend their assets to earn interest or borrow assets by locking up collateral. The lending process is automated via smart contracts that ensure the security of user funds, while the interest rates are dynamically adjusted based on market conditions and the supply-demand ratio. Borrowers can choose from a variety of supported crypto and real-world assets, and enjoy transparent borrowing rates and collateral requirements.
How Borrowing Works:
Deposit Collateral: Users must deposit supported assets such as $VAULT, stablecoins, or cryptocurrencies.
Borrow Funds: Users can borrow assets up to a percentage of the collateral’s value.
Interest & Repayment: Borrowers pay interest on the borrowed amount and can repay in full or in installments.
Collateralization
VAULTIFY supports a range of assets for collateral, including traditional cryptocurrencies, stablecoins, and real-world tokenized assets. Collateralization rates vary depending on the asset’s volatility, with stablecoins offering higher collateralization ratios. The platform actively monitors collateral to ensure users are not over-leveraged.
Supported Collateral Types:
Cryptocurrencies (BTC, ETH)
Stablecoins (USDC, DAI)
Real-world assets (Tokenized real estate, art, commodities)
Liquidation Mechanics:
If the value of the collateral drops below the required ratio, the collateral is subject to liquidation. In such cases, the system will automatically sell off part of the collateral to repay the loan and restore the balance.
VAULTIFY Tokens as Collateral
Similar to Kamino’s kToken system, $VAULT can be used as collateral on the platform. Users who lock $VAULT tokens enjoy better borrowing rates and access to premium features. However, as the $VAULT token may fluctuate in value, users need to monitor their collateralization ratio to avoid liquidation risks.
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