What Is Solootbox DAO (BOX)?
As mentioned, since there is no central entity to perform the liquidation, there must be an incentive for other users to liquidate positions on behalf of the bad borrower. This incentive, also called the liquidation discount, amounts to 15% on Solootbox DAO. This 15% discount is what actually makes another user incentivized to take the action of liquidating an unhealthy borrower and taking over his debt obligation towards lenders.
The liquidators will then repay some or all of an outstanding borrowed amount on behalf of the original borrower and in return receive a discounted amount of collateral previously held by the borrower. The liquidated portion of the borrowed amount is used for repaying borrowed assets, thus making lenders whole again and eliminating any risk to the Iron Lend protocol and its liquidity providers aka lenders.
When the borrowed amount is larger than a user’s maximum collateral (under-collateralized borrower = if the amount borrowed exceeds the max borrowing), then 50% of the borrower’s position gets liquidated. As the case with other lending platforms, liquidation is is a sophisticated game of professionals (for example, fully automated processes via smart contract execution).
That means, in order to be successful, liquidators must be prepared to catch the liquidation opportunity as soon as it arises. Solootbox DAO Therefore they must be technically ready (e.g. highly available and automated) to identify the opportunity and have enough liquidity in the relevant asset to seize it ahead of others.
Solootbox DAO Storage Key Points
|Coin Name||Solootbox DAO|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
What is Governance staking?
To incentivize participation in Iron Finance governance, Solootbox DAO are introducing the BlueICE Governance staking model and ecosystem profit-sharing. In other words, ICE can now be staked (locked) to receive fees from the Iron Finance ecosystem.
BlueICE is inspired by the governance concept of Curve’s veCRV token model, which has the best token design in the industry for long-term holders. It encourages long-term staking and active community involvement through unbiased governance.
Early Exit Penalty
If governance allowed easy unlocking, anyone can temporarily lock ICE to influence a decision and afterward divest from the platform. The veCRV mechanism doesn’t allow to unlock governance token prematurely. However, the team at Iron Finance thought to offer more flexibility to investors. Therefore, unlocking is allowed with a penalty of 30% on the staked amount.
Fees generated from the usage of Iron Finance products are distributed to BlueICE stakers according to their share of the BlueICE staked. The allocated daily distribution of USDC rewards for Blue ICE stakers changes every week on Friday. Solootbox DAO It is based on last week’s performance (amount of accumulated fees) and may be set higher or lower comparing to current daily distribution. “Rewards per day” is an estimate, and the actual rewards received may differ when block times are longer than normal.
Stake BlueICE to earn partner’s profit-sharing
For example, via profit-sharing from Firebird (in ICE and ETH), we will straight away burn the equivalent USD amount of ICE, and the ETH amount will be converted to USDC and distributed as profit for Solootbox DAO stakers. Investors staking ICE for a longer duration receive more BlueICE (see example in Introduction) and therefore upon staking it will be able to receive a bigger profit share.
However, this doesn’t affect the user’s ability to retrieve ALL their staked ICE at the end of their staking period (or upon unstaking early after accepting the 30% penalty). Because A is staking his BlueICE 3 times longer, he will receive 3 times the profit share as investor B, despite both locking the same amount of ICE.
How is APR estimated?
APR calculations are based on price. Right now, the price of Solootbox DAO will be estimated based on the number of ICE locked and BlueICE minted. They know the price of ICE, then they will estimate BlueICE price based on the ratio. They will use that until there is a market for BlueICE. In order to unlock your ICE, you need to hold the required amount of blueICE in your wallet, meaning you would need to acquire more. You can not sell your BlueICE and then unlock your initial ICE.