Orbitium offers lending & yield farming via a decentralized lending protocol relying on asset pools. Lenders (yield farmers) on the system are users who decide to commit their assets to the asset pool to serve as a credit to borrowers in exchange for sharing the loan interest rate with Orbitium.

Yield farmers are the lenders who hold USDX and are looking to earn stable yields on their holdings. The yield farmers can deposit their assets into the Orbitium vault, for a period of their choice. In return, the yield farmers receive an interest payout typically defined by APR (annual percentage yield). The APR may vary from time to time. Yield farming is similar to depositing money into a bank account for interest earnings. However, compared to traditional finance, Orbitium offers higher returns.

Lending Rates (APR)

As more assets are added to the pool by lenders, the utilization ratio and interest rate drop temporarily until the new funds are borrowed. As the APR (interest rate) is dynamically set, what the lender receives will fluctuate, but 1% is retained and transferred into the Orbitium treasury for redistribution.

We can determine the expected evolution of APR with the utilization of the pool using the 1% protocol fee and a minimum return for lenders of 5% as an attractive return:

                             *Borrower/Lender rates as a function of the utilization rate*

Where:

• $IR$ - the total interest rate the borrower has to pay
• $UR$ - the utilization rate of the asset pool
• $PM$ - the protocol profit margin of 1%
• $LM$ - the minimum lender margin of 5%
• Max - the maximum interest rate charged, in this case - 50%

Fees

Refer to Orbitium Fees for details.

Rewards

The lenders (yield farmers) will receive the APR (dynamic interest rate) generated from the borrowers, minus the 1% protocol fee.