YieldBlox Protocol Design Choices: Maximizing Capital Efficiency

This blog post covers some of our protocol design choices that maximize YieldBlox’s capital efficiency. Capital efficiency is crucial to any DeFi protocol as it’s directly related to the value the protocol creates. In the case of lending protocols like YieldBlox, higher capital efficiency allows protocols to maximize the interest rates that lenders receive while minimizing borrowers’ interest rates.

Breaking Down Capital Efficiency in DeFi

More Information on YieldBlox’s Demand-Based-Interest Rates:

Commentary on Interest Rates: https://docs.yieldblox.com/#/Whitepaper?id=loan-interest-rates

Commentary on tracking Utilization: https://docs.yieldblox.com/#/Whitepaper?id=utilization-feed

Equations: https://docs.yieldblox.com/#/Whitepaper?id=protocol-calculations

Capital Efficiency in YieldBlox

Lending Avenues

YieldBlox Protocol Asset Structure: https://docs.yieldblox.com/#/Whitepaper?id=protocol-tokens

Collateral Flexibility

Circular Lending


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Script3 —DeFi on Stellar | https://www.script3.io/ OptionBlox: https://optionblox.com/ YieldBlox: https://www.yieldblox.com/

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