Lending and Borrowing Protocol

Lenders can deposit assets into liquidity pools and earn interest based on the utilization of the pool.

Borrowers can take loans from these liquidity pools, offering collateral to secure the loan. Oxilo's algorithm dynamically adjusts interest rates based on pool utilization to ensure liquidity remains available.

Collateralization: Users are required to over-collateralize their loans to ensure the platform remains solvent. The collateral is held in smart contracts, which are subject to liquidation if the loan falls below a certain collateral-to-debt ratio.

Liquidation Mechanism: A robust liquidation process ensures bad debts are minimized, using automated smart contracts to liquidate collateral in case of default.