Markets
Farmenta has two markets. Each market holds its own USDG, with its own lenders, its own borrowers and its own rules. They share nothing, so a loss in one cannot reach the other.
Think of two separate safes in the same building. The building and the staff are the same, but the money in one safe is never used to cover a shortfall in the other.
| Blue-chip market | Meme market | |
|---|---|---|
| Collateral accepted | Positions in the listed ETH/USDG, META/USDG and NVDA/USDG pools | Positions in the listed CASHCAT/USDG, PONS/USDG and AI/USDG pools |
| Asset lent | USDG | USDG |
| Lender share token | fUSDG-BC | fUSDG-MEME |
| Price source for the risk token | Chainlink | On-chain 30 minute TWAP |
| Risk level | Lower | Higher |
Why two markets
An ETH position and a meme token position carry very different risk. A meme token can lose most of its value in minutes, and its price is easier to manipulate. If both kinds of collateral drew on the same USDG, lenders who only wanted ETH exposure would also carry meme token risk.
With two markets, each lender chooses the risk they accept. Lenders in the Meme market earn a higher rate for the same utilization and carry the higher risk. Lenders in the Blue-chip market do not.
Parameters side by side
The numbers below are the presets of each market. They are also the loosest values the contract allows. A single pool can be listed with stricter values, never looser ones.
| Parameter | Blue-chip | Meme |
|---|---|---|
| Maximum loan to value when borrowing | 65% | 30% |
| Liquidation threshold | 75% | 40% |
| Liquidator bonus | 5% | 10% |
| Protocol liquidation fee | 0.5% of the repaid amount | 1% of the repaid amount |
| Close factor | 50%, or 100% if the health factor is below 0.9 or the debt is below 100 USDG | 100% |
| Debt cap per pool, at most | 500,000 USDG | 20,000 USDG |
| Debt cap for the whole market | 500,000 USDG | 50,000 USDG |
| Minimum debt | 10 USDG | 10 USDG |
| Minimum position value | $50 | $50 |
| Share of interest kept as reserve | 15% | 25% |
| Reserve floor | 1% of lender funds | 2.5% of lender funds |
A quick way to read this table: at these presets, with a position worth $10,000 you can borrow up to $6,500 in the Blue-chip market and up to $3,000 in the Meme market. The loan becomes liquidatable when the debt rises above 75% of the position's value in Blue-chip and above 40% in Meme.
The full list, including the interest curves and oracle settings, is on the risk parameters page.
Listed pools
Six pools are listed, three in each market. ETH/USDG and the three meme pools are listed at their market's preset max LTV and liquidation threshold. META/USDG and NVDA/USDG, which pair a tokenized stock with USDG, are listed with stricter ones. Every pool has a debt cap below the most its market allows, and a minimum position value of $50.
| Pool | Market | Max LTV | Liquidation threshold | Liquidator bonus | Debt cap |
|---|---|---|---|---|---|
| ETH/USDG | Blue-chip | 65% | 75% | 5% | 25,000 USDG |
| META/USDG | Blue-chip | 50% | 65% | 5% | 25,000 USDG |
| NVDA/USDG | Blue-chip | 50% | 65% | 5% | 25,000 USDG |
| CASHCAT/USDG | Meme | 30% | 40% | 10% | 3,000 USDG |
| PONS/USDG | Meme | 30% | 40% | 10% | 3,000 USDG |
| AI/USDG | Meme | 30% | 40% | 10% | 3,000 USDG |
The terms in force for a pool are the ones termsOf(poolId) on the policy returns. The owner can change them within the presets of the pool's market, see pool listing. Token addresses are on the addresses page.
What decides the market of a position
Each token has a tier, set when the token is enabled. A pool takes the riskier tier of its two tokens. A market only accepts positions from pools of its own tier, so the Blue-chip market rejects a meme pool and the Meme market rejects an ETH pool.
Every accepted pair is quoted in USDG. Pairs between two risk tokens are not accepted.
How prices differ between the markets
In the Blue-chip market, ETH, META, NVDA and USDG are priced by Chainlink. The pool's own price is only used as a cross check: a borrow is rejected if the pool price is more than 2% away from the Chainlink price.
In the Meme market, there is no Chainlink feed for the meme token. The price comes from a time weighted average of the pool price over the last 30 minutes, recorded on-chain. Borrowing uses the lower of the current pool price and that average. See price oracles and price gates.
Prices of meme tokens can be moved more easily than the price of ETH, and a meme token can lose nearly all of its value. Three meme pools are listed, each with a debt cap of 3,000 USDG. Read oracle, market and chain risks before you supply to or borrow from this market.
Isolation in practice
- USDG supplied to one market is never lent to borrowers of the other.
- Each market has its own reserve. A reserve only absorbs bad debt from its own market.
- Bad debt that the reserve cannot cover lowers the share price of that market's lenders only.
- A pause applies to one market at a time.