Parameters

Each reserve in a pool has these parameters that balance the supply & demand of the pool or govern the size of the loan you can take out (based on the quality and liquidity of the collateral asset).

The critical thing to remember is the borrow APR changes based on utilization. Utilization is Tokens Borrowed / Tokens Supplied. At 0% utilization, there is excess supply and no demand, while at 100% there is excess demand but no supply.

Parameter
Value

Optimal utilization rate

Utilization where borrow APR starts to increase exponentially

Loan to value ratio

Borrow X% against your collateral

Liquidation penalty

% of your liquidated collateral to incentivize liquidators

Liquidation threshold

Account health that will trigger a liquidation

Min borrow APR

Borrow APR when Utilization = 0%

Optimal borrow APR

Borrow APR when at optimal utilization

Max borrow APR

Borrow APR when utilization = 100%

Borrow fee

Origination fee Solend keeps when you borrow

Host fee percentage

% of borrow fee kept by referral, UI or pool creator

Deposit limit

The cap of tokens that can be deposited into the pool

Borrow limit

The cap of tokens that can be borrowed into the pool

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