Initially, Rikkei Finance will prioritize addressing issues in 4 critical areas: cross chain, interest rate model, asset collateral and liquidation.
About coin defi Rikkei Finance
The project allows users to lend and borrow any digital assets, regardless of their blockchain, using wrapped tokens. The interest rate model addresses two key issues: one to make borrowing less costly during periods of low utilization, and the other to increase liquidity by providing incentives during periods of high utilization.
There are no restrictions on the types of collateral, supported by the Rikkei Finance platform. Users are free to decide which assets can be used as collateral, based on the asset ranking system. In particular, in addition to stablecoins and blockchain-based tokens, users can use their NFT assets as collateral for a loan or offer loans to other users on their non-fungible tokens. Rikkei Finance promotes a hassle-free user experience by allowing members to buy liquidation coverage in their vaults.
Rikkei Finance — a protocol on the Binance Smart Chain that establishes money markets with the following key features:
| 1 | Enjoy high speed and low transaction costs with Binance Smart Chain. |
| 2 | Borrow cryptocurrencies, stablecoins and NFTs without having to negotiate terms such as maturity, interest rate or collateral with a partner or counterparty. |
| 3 | Supply cryptocurrencies, stablecoins and NFTs and earn interest. You are also rewarded for providing liquidity to a protocol, backed by over-collateralized assets. |
Assets, held by the RikkeiFinance protocol, are used as collateral for borrowing under the protocol. Each market has a margin ratio, ranging from 0% to 90%. It represents a percentage of the value of the underlying asset that can be borrowed.
Selection of assets
To ensure the efficiency of the system and protect borrowers and providers, only the most liquid assets are included in the pool. Assets will be valued and ranked in order, based on several liquidity measures. Assets with a higher rating will have more liquidity than assets with a lower rating.
Assets that meet the minimum criteria in terms of market capitalization, volume, ratio of turnover to total supply, and other factors will be filtered into Phase 3 for liquidity and ranking purposes. In step 3, the asset market is assessed and the assets are ranked, using a set of metrics, such as turnover ratio, current ratio and Hui Heubel liquidity ratio. The top ranked assets will be further analyzed and put into the voting section before they are officially added to the pool.