BlockCola is a non-custody, decentralized money market protocol, where users can participate as depositors or borrowers. Investors provide liquidity to the market for passive income, while borrowers have the opportunity to borrow in conditions of excess (permanent) or insufficient (one-block liquidity) collateral.
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Description of the BlockCola project
The BlockCola protocol is completely open source, which allows any user to interact with a user interface client, API, or with smart contracts on the Tron network directly. Open source means you can create any third party service or application to interact with the protocol and enrich your product.
After making a deposit, you will receive passive income, based on market borrowing demand. In addition, asset escrow allows you to borrow loans, using your escrowed assets as collateral. Any interest you earn by depositing funds helps to offset the interest rate that you accumulate by borrowing money.
The platform has 2 types of fees:
| The first | When receiving a loan, borrowers are charged 0.25% of the loan amount, of which 100% is used for exchange for the COLA token and burned. |
| The second | Flash loans are charged 0.09% of the loan amount, of which 70% are redirected as additional income for protocol depositors, and 30% are divided, using the same 100% loan disbursement fee model. There are also transaction fees for using TronBlockchain, these fees depend on the state of the network and the complexity of the transaction. |
Your earnings will vary, depending on the deposit rate of the asset. Each asset has its own supply and demand market. The more funds are borrowed, based on available liquidity, the higher the rate increases and vice versa. You can find the average annual rate over the last 30 days to assess the evolution of the rate, and you can also explore more data on the standby overview of each asset in the home section of the app.
Deposit rate calculation
The deposit rate is the result of the loan rate, paid by the borrowers, divided among the depositors. This rate depends on the ratio of supply and demand, so the higher the utilization ratio, the higher the rate on deposits. The rate will fluctuate, depending on this supply and demand ratio, and you can find the specific mathematical formula on the protocol paper (in preparation).
You can deposit any amount you want, there is no minimum or maximum limit. However, it is important to consider that for really low amounts it is possible that the transaction costs of the process will be higher than the expected profit.
Additional information
So far, the site does not have White Paper and RoadMap. The developers provide only a section with answers to questions. If you want to stay up to date with all innovations, subscribe to the community on these social networks:
- twitter;
- blog;
- telegram.
Your funds are allocated under a smart contract. The smart contract code is open, officially verified by third party auditors. You can withdraw your funds from the pool on demand or export a tokenized (wTokens) version of your creditor position. wTokens can be moved and sold like any other crypto asset on Tron.